In a discouraging sign for the building industry in Australia, the latest data suggests the pace at which finance has levelled off, and has done so at a level industry commentators feel is not sufficient to underpin a strong home building recovery.

On a seasonally adjusted basis, the combined number of loans made for the purchase or construction of new homes (owner-occupied housing only) eased back 0.10 per cent in August to come in at 8,347, as a 2.2 per cent rise in the number of loans made to developers for construction…