state infrastructure booming, page-4

now housing back on the rise ABS official release today(11/7/06)

Loans surge: More loans are being written now than during the last housing boom. (ABC TV)

Home loan surge raises rates speculation
Lending for housing is back to 'record' levels, putting renewed focus on official interest rates.

Figures from the 'Australian Bureau of Statistics' show the number of new home loans in May this year 'surpassed' the peak of the last housing boom in late 2003.

Almost 63,000 home buyers secured finance in May.

That is a jump of 4.7 per cent seasonally-adjusted and compares with financial market forecasts of just 1 per cent.

The value of new home loans during May is just on $20 billion, up 4.5 per cent.

Short-term market interest rates have risen, as investors now view another increase in official rates as a greater likelihood.

The value of investment loans is up 4.9 per cent.