Westpac Banking (ASX:WBC, NZE:WBC) said average monthly mortgage application volumes fell to 30,000 in the third quarter of fiscal 2026, with a post-budget run rate of 27,000, according to a Thursday Australian bourse filing.
The third-quarter volumes are calculated as the monthly average of April and May, which compares with 30,000 in the third quarter of fiscal 2025 and 33,000 in the second quarter of fiscal 2026.
The bank said the current operating environment is impacted by higher rates and policy changes, which it said will slow credit growth.
Westpac expects housing credit growth for investors to fall to 4.4% in fiscal 2027 and 2028, from 8.4% in fiscal 2026, while total housing credit growth is expected to fall to 4.7% in fiscal 2027 and 5.2% in fiscal 2028, from 6.5% in fiscal 2026.
The lender's Australian shares were down nearly 1% in recent Thursday trade.