The Reserve Bank of Australia (RBA) has noted a decline in demand for mortgages as financial conditions within the country have tightened recently.
It did say, however, that there had been an overall improvement in the success of the housing sector.
In the RBA's minutes from its October policy meeting, it stated: "There was some evidence that the tightening in financial conditions over recent months had lessened the demand for mortgage finance, but the housing market overall continued to show signs of improvement."
The RBA's decision to cut its benchmark interest rate, since 2011, has helped to decrease the cost of mortgages for homebuyers in Australia and increased confidence within the property market.
As a result, property prices within the country have been pushed up, particularly in cities like Melbourne and Sydney, as consumers compete for housing.
At the same time, housing affordability has improved and the RBA noted that interest payments have been in decline.
Posted by Ravin Chatlani