MBA chief economist says home loan figures 'are encouraging'

The latest home loan figures for May 2011 have been described by the chief economist at the Master Builders Association (MBA) as "encouraging".

Peter Jones observed that there has been a surge in financing for new dwellings and an improvement in the investment lending figures.

He suggested that the steady interest rates are contributing to an "upswing in residential building".

"The latest figures are encouraging as eight months of interest rate stability begins to ease household caution, sparking a much needed turnaround in housing activity," Mr Jones stated.

Despite this, the expert warned that home loans figures are likely to recover at a slow pace after the decline experienced last year.

Earlier this month, figures from Credit Suisse analysts revealed the value of home loans approved by the financial institution rose by 15.8 per cent year-on-year.

The surge may have been in part due to the bank's move to cut interest rates and get rid of fees since the global financial crisis, reported the Herald Sun.

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