Australia's housing sector appears to be making an earlier than expected comeback following months of sluggish growth, economists say. Australian housing finance commitments for owner occupied housing rose 1.1 per cent in February, seasonally adjusted, to 59,091, the Australian Bureau of Statistics said. Total housing finance by value rose 2.2 per cent in February, seasonally adjusted, to $18.915 billion. Housing finance by value for owner occupation rose 2.3 per cent, adjusted, to $13.022 billion. The median market forecast for the number of housing finance commitments for owner occupiers was for a rise of 0.5 per cent. Westpac senior economist James Shugg said the numbers pointed to an early pick up in the housing sector. "There is more evidence in these numbers that the building sector is going to be contributing to the economy perhaps a little bit earlier than we thought this year," Mr Shugg said. "We have been watching to see signs of life on the investor side because if you see any evidence of that coming through it means that at the auctions the potential owner occupiers are going to be competing with the investors." Macquarie Bank senior economist Brian Redican said while the data pointed to strength in the sector, it was unlikely to ring alarm bells at the Reserve Bank of Australia (RBA). "It's another modest tick in the box that suggests the next move in interest rates will be up, however it's not suggesting the economy is tearing away," Mr Redican said. "So I don't think it's suggesting any urgency to do that but certainly it's moving in that direction." UBS Australasian chief economist Scott Haslem said the data confirmed a positive trend in lending was taking place. "To the extent this is consistent with the housing sector finding a trough - and perhaps now showing some signs of a pick-up in construction activity - it is consistent with the improving housing and consumer outlooks we hold for 2006," Mr Haslem said. Source:AAP