Australian housing's signs of life

Another rise in home loans in May suggests Australia's housing market may be showing signs of recovery.

After three months of declines following floods in Queensland and Victoria, loan approvals rose 4.8 per cent in April and a further 4.4 per cent in May, to a total of 49,437 loans, according to the Australian Bureau of Statistics.

ANZ economist David Cannington said bank lending had returned to its highest in about two years, suggesting a recovery from the global financial crisis.

However, much of the growth in lending was in refinancing by borrowers, Mr Cannington said.

Source: SMH.com.au