A slump in new housing loans has added to the case for a reduction in official interest rates when the Reserve Bank of Australia meets again at the beginning of September. Over the first six months of this year the volume of new loans has fallen by 25 per cent, the worst result since 1989. The highest mortgage rates in 12 years have seen the level of home loans fall for five consecutive months, with owner occupied loans down 29.5 per cent and investment loans 32 per cent lower than in June last year.
