By a staff reporter, with AAP
The demand for home loans missed expectations in April, according to the Australian Bureau of Statistics.
The data showed the number of home loans granted in April lifted a seasonally adjusted 0.8 per cent to 48,475.
The result compares to an initially reported 48,071 in March.
Bloomberg had expected the number of housing finance commitments to rise by 2 per cent in April.
Total housing finance by value fell 0.2 per cent in April, seasonally adjusted, to $22.749 billion.
Commonwealth Bank senior economist Michael Workman says the figures are still a bit weak.
"The general tone of the data is for a pretty modest upswing in loans by value and the number of loans," he said.
"Its pretty much in line with the soft consumer confidence numbers at the moment.
"In answer to questions consumers are saying it's a good time to buy a dwelling, they're pretty modest at committing themselves to borrowing."
Mr Workman said there was hardly any growth in the number of new home buyers taking out loans, probably because most government assistance programs have ended.
He said the growth in the number of people trading up to more expensive housing appears to be restrained because of uncertainty about employment.
"The tendency is still for people to pay down existing debt rather than take on new debt."
Mr Workman says the housing finance figures would add to the case for two more cash rate cuts by the Reserve Bank of Australia before the end of 2013.