The rate of housing finance commitments for owner occupied homes increased by only 0.9 percent in October as opposed to a 1 percent increase in September according to the Australian Bureau of Statistics.

"In trend terms, increases were recorded in all states and territories, except the Northern Territory where commitments declined and South Australia where no change was recorded," said Real Estate Institute of Australia (REIA) President, David Airey.

"A considerable part of the overall increase can be attributed to refinancing rather than new activity. Refinancing of established dwellings increased 1.8 percent in October, while the purchase of established dwellings increased 0.7 percent. Falls were recorded for the construction of new dwellings," he added.

The number of first home buyers, as a percentage of total owner occupied housing commitments, decreased from 15.9 percent in September to 15.4 percent in October -still well below the long-run national average of 20.1 percent, and dramatically down from the 27.1 percent level a little more than a year ago.

In trend terms, the value of investment housing commitments fell by 0.8 percent compared to the previous month, following falls of 1.0 percent or more in the preceding four months. On a seasonally adjusted basis, there was a 1.1.percent increase in October 2010. "We are seeing the cumulative effect of six increases in official rates between October last year and May this year with the November rate rise still to be felt," he said.