Westpac has blamed higher interest rates and Federal Budget changes for cooling the housing market as its mortgage applications fall 20 per cent and investor credit growth is tipped to roughly halve next year. Home loan applications are now running at about 26,000 a month, 20 per cent below first-quarter levels and 11 per cent lower than the June-quarter average of 29,000. Australia’s second-largest lender expects the slowdown to hit investors hardest, forecasting investor housing credit growth will fall from 9.1 per cent this financial year to 4.5 per cent in the next. Overall housing credit growth is tipped to ease from 6.8 per cent to 4.7 per cent. Your email address: Email Us Get the Newsletter By continuing you agree to our Terms and Privacy PolicyChief financial officer Nathan Goonan said the retreat had been faster among investors with applications down 26 per cent compared with an 18 per cent fall from owner-occupiers.