The latest housing finance statistics suggest the size of the average home loan is holding at a record high and is growing at the fastest pace in 12 years.

“Over the past year the average home loan grew 15.4% and is showing no signs of slowing down,” says CommSec economist Savanth Sebastian. “Clearly the lift is been fuelled by the low interest rate environment.”

Sebastian says policymakers will be encouraged by the lift in owner-occupied loans at the expense of investor finance. The value of investment loans has fallen for three out of the past four months.

“Overall the housing finance statistics do not suggest a huge pullback in home lending, although there are signs that activity levels are starting to ease,” he says. “Over the next few months the tighter bank lending standards will filter through to the housing statistics.

“There is no doubt the pullback in investor loans is a positive, and will help to cool property prices but housing is all about demand and supply. Encouragingly loans to build new homes lifted after falling for the prior three months.”