The number of home loans approved in March fell to a 10-year low, as buyers stayed out of the housing markets amid lower expectations for price growth and uncertainty about further interest rate increases.

The number of home loans approved in March fell 1.5 per cent, to a seasonally adjusted 44,968, its lowest level since February 2001. Economists’ forecasts had centred on a 2.0 per cent rise in housing finance commitments for the month.

The Australian Bureau of Statistics said total housing finance by value fell 0.1 per cent in March, seasonally adjusted, to $19.300 billion.

ICAP economist Adam Carr said people were being more cautious because ‘‘home prices weren’t jumping 20 per cent’’.

“There’s no incentive to dive into the housing market. There is no rush. The Reserve Bank knows lending has been weak. People need to accept the reality that we don’t want a credit boom during a mining boom," he said.