On Friday the ABS reported that the value of new home loan commitments for October fell again, this time by 2.7% to $25.79 billion.
Owner occupiers led the charge, down 2.9% to $17.16 billion, while investor lending fell 2.2% to $8.62 billion.
Collectively, the value of lending is down more than one-sixth (17.1%) compared to a year ago, but remains above pre-pandemic levels.
Refinancing continues to sit at record levels, according to ABS head of finance and wealth Katherine Keenan.
"Despite the October fall, monthly owner-occupier refinancing between lenders has remained above $12 billion since June 2022, well above pre-pandemic values. Investor refinancing activity has also remained high," Ms Keenan said.
"The RBA cash rate increased 225 basis points between June and October 2022, which coincided with a greater number of borrowers seeking loans with lower interest rates from competing lenders.”ABS head of finance and wealth Katherine Keenan
The average owner occupier home loan size was $595,000 - an increase of $7,000 compared to September.
For investors it was similar - approximately $594,000, up from $581,000.
Fixed-rate home loans, including refinances, continued to fall in popularity, down marginally to $1.901 billion, compared to nearly $46 billion in variable-rate home loans.
This means the share of new fixed-rate lending has fallen to less than 4.00% of the value of all home loans, where at one point in mid-2021 they made up nearly half.
Construction finance at a nadir
Housing Industry Association chief economist Tim Reardon said finance for housing construction was at a three-year low, down 0.9% overall.
Finance for the construction of owner occupier dwellings was $2.10 billion in October, a 3% slump for both the month and the year.
"Further hikes would deepen and prolong the trough in building activity that is emerging," Mr Reardon said.
"There is a risk that the RBA will go too far and need to cut interest rates again to support employment across the economy.
"The risks to household and business finances from such an aggressive hiking cycle are clear. A deep and prolonged trough in home building activity will jeopardise the housing industry's 'soft landing'.
"The RBA will not restore the economy to stable growth by putting the building industry through boom-and-bust cycles."
Many economists have tipped another 25 basis point cash rate rise at next week's RBA board meeting, which would bring the cash rate to decade highs of 3.10%.