The number of home loan approvals in Australia rose in March, but economists said the housing sector remains soft.
An Australian Bureau of Statistics (ABS) report shows housing finance commitments for owner occupied housing rose 0.7 percent in March, seasonally adjusted, to 59,724, against market expectations of a 0.3 percent decline.
Financing with a total value of housing rose 1.2 percent in March, seasonally adjusted, to $ 19,135 billion.
"It's pretty run-of-the-mill number," Macquarie Bank senior economist Brian Redican said.
There was a modest rise in overall commitments, while loans to investors have been quite strong, although this number tends to be very stable.
"And it was certainly far below the previous peak," he said.
"Loans for new construction, which tends to be the best indicator of future housing activity, is weak in the month.
"So the power of the bag, pockets of weakness - as a whole is still soft enough to reflect the housing sector."
The ABS report shows the value of the investor loans grew by 2.5 percent in March.
The number of commitments for residential construction fell 1.7 percent.
ANZ head of financial system analysis Paul Braddick said that after rising sharply in the middle of last year, the growth of housing finance approvals have been reduced significantly in the last six months.
"The equitable financial agreement in the last six months shows that the recent acceleration in housing credit may be short lived and we continue to expect moderate growth in housing credit through the middle of this year," he said.
UBS economist Scott Haslem said the data showed surprising strength in both total loans and loans for new construction.
"Investors are now borrowing at its highest since early 2004, and the overall new construction loans points greater than 10 per cent increase in building approvals over the coming months," he said.
"While we have been predicting recovery lightweight construction, which reflects the previous activities under the terms of the underlying economy, today's data increases the instructions on the larger force."
However, this data before the Reserve Bank of Australia recently (RBA) latest interest rate rises, "and we hope to reduce the data to see mid-year", said Haslem said. www.theage.com.au
An Australian Bureau of Statistics (ABS) report shows housing finance commitments for owner occupied housing rose 0.7 percent in March, seasonally adjusted, to 59,724, against market expectations of a 0.3 percent decline.
Financing with a total value of housing rose 1.2 percent in March, seasonally adjusted, to $ 19,135 billion.
"It's pretty run-of-the-mill number," Macquarie Bank senior economist Brian Redican said.
There was a modest rise in overall commitments, while loans to investors have been quite strong, although this number tends to be very stable.
"And it was certainly far below the previous peak," he said.
"Loans for new construction, which tends to be the best indicator of future housing activity, is weak in the month.
"So the power of the bag, pockets of weakness - as a whole is still soft enough to reflect the housing sector."
The ABS report shows the value of the investor loans grew by 2.5 percent in March.
The number of commitments for residential construction fell 1.7 percent.
ANZ head of financial system analysis Paul Braddick said that after rising sharply in the middle of last year, the growth of housing finance approvals have been reduced significantly in the last six months.
"The equitable financial agreement in the last six months shows that the recent acceleration in housing credit may be short lived and we continue to expect moderate growth in housing credit through the middle of this year," he said.
UBS economist Scott Haslem said the data showed surprising strength in both total loans and loans for new construction.
"Investors are now borrowing at its highest since early 2004, and the overall new construction loans points greater than 10 per cent increase in building approvals over the coming months," he said.
"While we have been predicting recovery lightweight construction, which reflects the previous activities under the terms of the underlying economy, today's data increases the instructions on the larger force."
However, this data before the Reserve Bank of Australia recently (RBA) latest interest rate rises, "and we hope to reduce the data to see mid-year", said Haslem said. www.theage.com.au
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