Macro prudential rules aimed at curbing bank lending to the perceived riskier parts of the market have worked and the chart on the left shows the dramatic drop in the growth rate of investor loans. However, credit and financing for household loans is an early predictor of house prices, as shown by the chart on the right, and the decline in owner-occupier lending is a trend worth monitor. Financing for house loans is a key indicator of whether banks are willing to increase lending at lower rates.