Imaculata
Hero
How often do you reward your party with magical items?
More specifically how much loot should a lvl 7 party have?
I reward them with magical items very rarely, so that magical items remain special.
As for your second question, a lvl 7 party should have as much loot as you want them to have. I know that's not what you wanted to hear, but it's the truth. Some DM's hand out loot like it was Christmas, and other DM's are closer to Scrooge. I'm more of a Scrooge type. I don't want too many magical items to creep into my campaign, because that means I have to start arming my monsters with high end gear as well.
As for general rewards. There's at least one cool reward per quest, and there's always a reward at every quest chain. Every dungeon floor will at least have one cool item, and I hand out healing potions if I know there's a hard encounter up ahead. I use my own random loot tables to determine if the party finds other stuff as well, such as a locked box, or a key that fits that lock. It's kind of cool when they find a little key, and yet don't know what it is for. I can then make that up on the spot.
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