New figures published today show that 3,259 mortgages - worth €577m - were issued in the first three months of this year.
The Irish Banking Federation/PricewaterhouseCoopers mortgage market profile shows that the volume of new lending is down 42% compared to the previous quarter and is down over 53% on the same time last year.
The survey says that while the first quarter of any year normally sees a lower level of lending, the more pronounced reduction in activity reflects the broader macroeconomic environment.
It also reveals that first time buyers and mover purchasers continue to dominate the much reduced market and they now account for 77% of the market by value and 67% by volume.
The IBF says that lenders are generally continuing to see subdued underlying demand for new mortgages. It says this is due to uncertainty about the economy, property price trends and future interest rate increases.
'The economic situation remains challenging and prudence remains the order of the day,' commented IBF chief executive Pat Farrell.
'For customers that means manageable borrowing and for financial institutions it means prudent lending,' he added.
