Housing finance hits seven year low

Home loan approvals fell to a seven year low in August as the official cash rate peaked at 7.25 per cent.

ABS data released yesterday showed owner-occupied home loan commitments fell 2.2 per cent in August to 48,903, the lowest recorded since 2001.

The decline was driven by a six per cent fall in finance for the purchase of new dwellings, a four per cent dip in finance for dwelling constructions and a 1.9 per cent slump in finance for established dwellings.

Non-bank lenders also continued to lose market share with the number of owner-occupied dwellings financed by the sector dropping by 7.9 per cent.