The total value of home loans approved dropped below $1 billion in the last week of October - the first time since July.
Reserve Bank data shows $932 million worth of loans were approved in the week ending November 1 - down $129 million on the previous week.
The data also indicates lending may be slowing in the wake of the central bank's crack down on low equity lending at the start of October.
The number of loans approved fell 4.1 per cent comparing the 13 weeks to November 1 to same period last year.
Year on year the number of loans were up 4 per cent but the growth has been trending down all year. In the week before the new lending rules were introduced the number of loans were up 7.8 per cent.
Meanwhile the value of home lending growth may also be trending downwards.
In the 13 weeks to November 1 the value was up just 2.1 per cent compared to same period last year.
Year on year the value was up 10 per cent. In November last year the value increase reached a peak of 40 per cent.
At the start of October the Reserve Bank capped new lending with equity of less than 20 per cent to 10 per cent. Banks who do not meet the new rules face losing their license.