Home Loan Situation could lead to House Price Falls?

Home loans fell in February, slumping for the fifth straight month, prompting Moody's Analytics' economist Matt Robinson in an article in Sydney Morning Herald's Business Day to suggest the extended decline may herald house price falls over the next half year.
The number of home loans dropped 1.8 per cent in February to 50,287, after January's slide was revised downward to a 7.3 per cent drop. Analysts had tipped a 1 per cent fall in February home loans, according to Bloomberg.
The picture of a lacklustre housing finance comes as the Reserve Bank embarks on a series of interest rate hikes and house prices continue to rise.
Mr Scutt of Arab Bank Australia said home prices have risen so much over last nine months they could be swaying people away from buying - and if they continue to rise, based on this data, there will be more questions about the impact of foreign buyers in the local market. The Foreign Investment Review Board currently has 50 investigations under way into suspicious purchases of local property, the government said last week.