The growth rate in residential mortgage lending fell to its lowest level in 16 years in April, according to the latest monthly statistics from the Central Bank.
Growth in residential mortgage lending fell to 11.4%, the lowest annual rate of increase since May 1992, the Central Bank said.
April is historically a slow month in terms of mortgage lending due to the usual timing of the Easter holidays, but this does not apply in 2008 as Easter fell in March this year.
The figures show that the total outstanding in residential mortgages is now €143.4 billion. It also reveals that the amount owed in overdrafts fell by €274m last year.
Outstanding indebtedness on credit cards increased year on year by 7.2% in April, down from 8.6% in March.
BoI says market is 'balancing out'
Bank of Ireland has said it has found evidence that the housing market is entering a period of 'balancing out'.
The bank published its quarterly Irish Property Review today, which claims that the average price of a house had fallen back to €281,600 in March – in line with 2006 levels.
However, it said rents had increased by 22% in the three years to March 2008.
The review claims that affordability is set to rise to just over 37% this year, as earnings increase by 4.9%.
