Home buyers have responded to aggressive marketing in the owner-occupier segment of the mortgage market by shopping for new loans in big numbers.According to the Australian Bureau of Statistics' latest housing finance figures, the value of new lending to owner-occupiers rose 6.1 per cent in August, compared with the previous month (in seasonally adjusted terms).The big increase follows month-on-month growth of owner-occupier lending of 1.7 per cent in July and 7.9 per cent in June. The value of new lending to residential property investors fell 0.4 per cent in July, compared with the previous month.Total new mortgage lending rose 3.5 per cent in July.The average loan size in July was A$371,200, compared with $362,900 the previous month. Over the 12 months to August average loan size has increased by 12.9 per cent.First-home buyers made up 15.7 per cent of the market.Lenders have responded to the Australian Prudential Regulation Authority's demand that they set a limit on the growth of investor housing loans by increasing their marketing efforts in the owner-occupier segment.Comparison site Mozo reported that ten lenders brought their variable mortgage rates down to 3.99 per cent of below during September. There has been a similar level of activity in recent months. Fixed rates have also been coming down.Lenders have been cutting as much as 60 basis points off their variable rates to remain competitive and cuts of 20 bps or more have been common.According to Mozo, borrowers can borrow on a variable rate as low as 3.84 per cent, a three-year fixed rate as low as 3.89 per cent and a five-year fixed rate of 4.24 per cent.Lenders are also offering fee waivers and other benefits to borrowers refinancing their mortgages.