New mortgage commitments fell across all types of buyers in June, with first-time homebuyers, the cohort of borrowers most exposed to rising borrowing costs, hardest hit.

The value of new home loans to first-time buyers fell 10 percent from May to a seasonally adjusted $4.5 billion in June, the biggest decline in three-and-a-half years and the lowest monthly total in two years.

“In most states, first-time homebuyer lending is back near levels seen before HomeBuilder,” Ms. Kilroy said.

Loans from new investors fell 6.3% monthly in June, the biggest drop in that category in just over two years, to $10.5 billion.

New mortgage commitments for total owner-occupants fell 3.3 percent from May to $20.5 billion.

Home values ​​are already firmly on the decline, falling 1.3 percent monthly in July, CoreLogic figures released Monday show.

The third consecutive month of national decline masks variation between different cities and regions, with Sydney falling a national-leading 2.2 per cent since June, even as Perth achieved a 0.2 per cent monthly rise, Adelaide a rise 0.4 percent and Darwin 0.5 percent.

But with home lending levels still at historically high levels, they are likely to come down as borrowing costs rise further.

This will weigh more on prices.

“Price declines are now spreading to other cities, with five of the eight capitals now experiencing declines, including Brisbane, Hobart and Canberra, and the other cities seeing a slowdown in price gains,” said the chief economist at AMP Capital, Shane Oliver, earlier this week.

“House prices are falling faster than unit prices, after the former rose more rapidly during the boom and units benefited from relatively firmer investor demand.”