Australia's housing finance commitments have marked their first increase in eight months, showing a renascent housing market amid higher rates and falling confidence.

The number of home loans issued to borrowers climbed 1.9 per cent in May, seasonally-adjusted, according to the Australian Bureau of Statistics.

A total of 48,818 loans were made to owner-occupiers in May, after a 1.8 per cent drop in April.

A Reuters poll predicted the number of home loans to rise by 1.5 per cent, seasonally adjusted.

Estimates ranged from a decline of 4.5 per cent to an increase of 3.4 per cent.

In total, the value of housing commitments climbed by 0.7 per cent, even as the value of loans for owner-occupied homes edged down 0.3 per cent to $13.69 billion, after seasonal adjustments.

The value of loans for investment homes increased to $7.662 billion, up by 2.6 per cent.

Commitments to acquire new homes increased 4.7 per cent after seasonal adjustments. Commitments to purchase established homes went up 2.3 per cent.

The number of loan commitments for building homes slumped 2.2 per cent.
Economists had forecast no change in May, which is the last month the Reserve Bank increased official interest rates in a bid to regulate inflation pressures.

Activity in Australia's housing sector has not improved since the First Home Owners Grant boost expired last year and interest rates began to rise. New home loans fell for seven months running since October 2009.