Home-loan approvals rose more than expected in November as first-home buyers got back into the market, offering a glimmer of hope for a sector whose growth has been stalled by the economic slowdown.

The number of home loans, seasonally adjusted, increased 1.3% in November to $12.4 billion from a revised 1.4% increase in October, according to the Australian Bureau of Statistics, suggesting the Reserve Bank's flurry of rate cuts is beginning to lure people back into the market.

Analysts expected the number of home loans to have edged up 1% in November.

Sydney Morning Herald