Data released by the Australian Bureau of Statistics earlier this week has shown a 1.4 per cent seasonally adjusted fall on the previous month.
Economist had predicted that there would be a 2.0 per cent decline.
First home buyers continued to account for 26 per cent of secured loans during the month of October as opposed to 26.1 percent in September and a peak of 28.5 per cent in May.
Low interest rates and the housing grant have enticed borrowers to take advantage of mortgage loans.
A stronger Australian dollar has led to lower exports and weaker terms of trade. Economist has predicted a $1.8 billion shortfall. Exports fell by 3 per cent, while imports reduced by one per cent.