House builders have pointed to a loss of consumer confidence for the continued slowdown in house price growth. The lack of availability of mortgages is still pushing down house purchase activity. "There is clearly less mortgage borrowing taking place in the current market, but those borrowers choosing a new loan are tending to opt for fixed rate loans, even though they have been more expensive than trackers," said a building society representative. She added “The extent to which an interest rate fall will revive the mortgage and housing market is likely to be limited while overall confidence in economic and housing market conditions is low”.

1. There has been a slump in mortgage lending.
A True
B False
C Cannot Say
2. Interest rates on tracker loans are variable.
A True
B False
C Cannot Say
3. The number of house purchases will rise if interest rates fall.
A True
B False
C Cannot Say