Home loan approvals took a surprising drop in November, suggesting a welcome slow down in the housing market and a cooling of investor activity.

Approvals fell 0.7 per cent in the month, according to official figures, disappointing economists’ expectations of a 1.7 per cent rise. “The overall theme is that the housing market is slowing down a little bit from some very high levels,” JP Morgan economist Tom Kennedy said. “It’s still going in…