New figures show the number of new mortgage loans issued to first time buyers and mover purchasers during the second quarter of this year increased compared to the same time last year.
This is the first time both segments have increased since the first quarter of 2006, the Irish Banking Federation figures show.
The two sectors account for more than four-fifths of all new mortgages issued and the IBF said that 88% of all mortgage credit now goes the home purchasing segments of the market.
A total of 3,225 new mortgages to the value of €524m were issued during the second quarter of 2012.
This represents an increase of nearly 23% on the number issued during the first quarter of the year but is down just over 9% on a year-on-year basis.
The chief executive of the IBF, Pat Farrell, said the latest figures show that the contraction in activity continues to slow significantly and the second quarter of this year has actually recorded modest growth in both first time buyer and mover purchaser activity.
''Taken together with recent comments from property economists signalling stabilisation in house prices in key sectors of the Dublin market, we will be looking to next quarter's data for confirmation of the trend indicated in this year,'' he said.