Australia - Owner occupier housing finance up 1% in April, investor lending +2.6%

Australian housing finance approvals to owner occupiers came in above expectations with a 1% rise in April vs consensus forecasts of a 2% dip.

The detail was positive as well with approvals ex refi also up 1%mth, and strong gains for construction-related approvals (finance for construction or purchase of newly built dwellings up 3.5%mth, 1.4%yr on a combined basis).

Gains in total approvals came across all states suggesting the Feb rate cut was the main driver. By segment, the number of loans posted similar gains for both first home buyers and upgraders, although this breakdown remains uncertain given the ongoing issues with estimates of first home buyers.

The value of loans to investors posted a surprisingly strong 2.6% gain with March's already strong 6.4% rise marked up to 7.1%.

The near 10% jump in the value of loans to this segment over the last 2mths suggests there may have been a rush to beat more restrictive lending criteria as regulators pressure banks to contain credit growth and risk in the investor segment.

Overall, the April figures indicate housing market activity may have caught a bit of an uplift from the February rate cut. Consumer sentiment around housing suggests that may have faded in May with buyer confidence measures choppy through the Feb and May rate cuts.

The impact of 'macro-prudential pressures' on investor activity may become more apparent in the second half of the year but appears to have done nothing to dampen activity in the first four months of 2015.