Data is here

Some more detail, courtesy of Westpac:

  • Excluding refinancing, approvals were up 0.6% m/m
  • The detail was a bit mixed
  • Construction-related approvals were down a tick (–1% m/m)
  • A 5% fall in finance for the purchase of newly built dwellings (including ‘off the plan’ purchases) counterbalancing a small rise in finance approvals for new construction

Abstracting from monthly volatility, the approvals data continues to show fairly clear signs of ‘topping out’ after a strong surge in 2013.

And, from MNI:

The February outcome was slightly higher than the MNI median consensus for a 2.0% rise but details of the data may not be particularly encouraging as much of the rise is due to loans to buy established dwellings. While such buying may prevent a decline in house prices, it is more important for the economy that loans for construction and to buy new dwelling rise. However, loans to buy new homes may increase in the months ahead as approvals for buildings already granted go to construction stage. Overall, the data continues to be supportive of the Reserve Bank’s outlook for a steady cash rate in the period ahead.

JPMorgan:

Say that with uilding approvals in a clear upswing, today’s February housing finance data shows housing market is responding to low interest rates in a number of ways:

  • Pricing, average loan sizes and loans to investors rising very swiftly
  • Notes the RBA views rising dwelling prices as a near-necessary condition to generate construction – so February’s numbers show at least some signs that activity is funneling in the desired direction, which would add a greater impulse from lending activity to GDP, and take some heat out of prices down the line.
  • Say that as long as loans for construction keep outperforming, and overall credit growth remains low, the RBA will remain comfortable with housing market activity
  • Warns the path of prices bears watching as a risk to financial stability and the policy cycle