The Australian Finance Group monthly sales report for March 2008 shows that the median mortgage in New South Wales was lower than eight of the preceding ten months, indicating either falling house prices or a reduction in the number of high-end properties requiring finance.The NSW March quarter average loan to value ratio is at least two percentage points lower than the previous three quarters, indicating borrowers require less finance to purchase cheaper properties.The quarterly reduction in LVR may be attributed to many lenders tightening borrowing requirements and becoming more selective to whom they will lend.AFG said mortgage sales fell 19 per cent for the first quarter of 2008, compared to the corresponding period. The mining state powerhouses are tightening their belts with quarterly Queensland mortgage sales down 16.4 per cent and Western Australia 14 per cent.The national average decline for the quarter was 14 per cent.Beating the average but still contracting is Victoria, down five per cent, with South Australia shrinking 12 per cent.According to AFG's estimates, the broker accounts for nine per cent of the national mortgage market.