The housing finance market surged in March, with a strong pick-up in both the number and value of loans.According to Australian Bureau of Statistics figures released yesterday, the number of owner-occupied housing loans in March was 5.32 per cent higher than the previous month (in seasonally adjusted terms).The value of these loans, at A$14.9 billion, was up 5.8 per cent on the previous month. Over the 12 months to March, the monthly value of owner-occupied housing loans has increased by 12.2 per cent.The value of investment housing loans rose 2.1 per cent in March.The value of all housing loan outstandings (owner-occupied and investment) in March was $1.2 trillion. The value of loan outstandings has increased by 6.2 per cent over the 12 months to February.Commonwealth Bank economist Michael Workman said in a note that first-home buyers were the "missing link" in the market. First-home buyers made up 14.2 per cent of borrowers in March, compared with 14.4 per cent in February and 15 per cent in January. First-home buyer participation was as high as 19.2 per cent last July.Workman said: "Higher levels of first-home buyers in the market are needed to make a solid impact on total housing activity."The RP Data mortgage index, which is a lead indicator for the ABS numbers, suggests that the pick-up in growth will continue. RP Data reported yesterday that its index rose 7.4 per cent in April, in seasonally adjusted terms. RP Data's head of corporate affairs, Craig McKenzie, said in a statement: "The strong levels of activity we have seen across our platforms since February are being driven by very strong refinance activity and renewed interest in the property market by investors."