FX.co ★ Australia Home Loans Slide Deepens in Q3 2026 as Borrowing Weakness Intensifies

Australia’s home loan activity deteriorated further in the third quarter of 2026, with the Month-over-Month indicator falling to -5.3%, down from -1.9% in the previous quarter, according to data updated on 11 November 2026.

In the second quarter of 2026, home loans were already in decline, with a -1.9% Month-over-Month change indicating a modest pullback in borrowing compared with the prior month. By the third quarter, that slowdown had sharpened significantly, as the -5.3% reading showed a much steeper month-to-month contraction in new home loan activity.

The figures highlight a clear weakening trend across consecutive months: the “Actual” measure for the third quarter reflects a more pronounced monthly drop than the “Previous” period, which itself compared the second quarter’s decline with the month before it. Together, the data point to mounting pressure in Australia’s housing finance market during 2026.