Mortgage loans fall by 1.6% in year

THE weak state of the housing market is reflected in the latest Central Bank credit figures that show mortgage borrowing fell by 1.6% year on year to end September 2010.

Last week the ESRI said it expected house prices to fall by 50% from peak to trough by the end of this year.

It warned of further possible declines in the year ahead as falling incomes and consumer nervousness threaten to depress demand even further.