New housing finance figures 'are disappointing'

Master Builders Australia has labelled the latest housing finance figures as "disappointing".

The Australian Bureau of Statistics revealed that overall mortgage demand rose by 0.9 per cent in seasonally adjusted terms in September, but this was offset by a 6.3 per cent fall in the number of housing loans for construction issued during the month.

Chief executive officer at the building organisation Wilhelm Harnisch said the poor results highlight the urgent need for further interest rate cuts.

He feels the Reserve Bank of Australia's prediction that an improving property building sector will make up for an expected decline in the resources industry in 2013 may be under threat.

"The September housing finance figures show that the housing sector will be struggling for some time to come," Mr Harnisch remarked.

However, he added that the increasing number of first home buyers was a "bright spot" and this trend should gather momentum as various state government incentives start to take effect.

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