Themortgage market in Ireland is flat-lining with just over 3,000 mortgages issued in the first three months of the year, according to figures from the Irish Banking Federation.
It is the lowest level of mortgages since records began and is just half the number of home loans drawn down in the same period last year.
At the peak of the boom in 2006, around 44,000 mortgages were being issued every month.
Mortgage experts blame the banks for the lack of lending and the trepidation still felt by both first time buyers who fear house prices may dip even further.
The mortgages issued in January, February and March of this year went mainly to first-time buyers and home movers.
The figures come as new Central Bank statistics show that households have more money to spend despite the increasing financial burdens of taxes, levies and higher mortgage payments.
New figures from the Central Bank show the average wealth per home has risen to €22,125 per head but this is largely because people have been paying off debts, it said.
Domestic deleveraging, as it is known, is a common trend in recessionary times, say economists as householders fear spending and prioritise paying off credit cards, home loans and any other debts in a bid to shield them from possible further knocks.
They also stop taking out loans.
"The economic situation remains challenging and prudence remains the order of the day," said Pat Farrell, chief executive of the IBF. "For customers, that means manageable borrowing, and for financial institutions it means prudent lending."
