8,000 mortgages were drawn down in the three months to the end of June with a total value of €1.65 billion.

Latest figures from the Banking & Payments Federation Ireland also show draw downs are up 17.6% in volume terms and 28% in value terms, when compared with the second quarter of 2016.

First-time buyers (FTBs) remain the single largest segment by volume (49.8%) and by value (48.4%). 

Together, FTBs and mover-purchasers accounted for 85.3% of the total value of mortgages drawn down during the period.

The volume and the value of re-mortgage/switching loans continue to increase, with 675 re-mortgage/switching loans in Q2 to the value of €154m.

This reflects year-on-year growth of 37% in volume and 43% in value.

At the peak of the market, though there were more than 5,000 people switching in any given quarter.

The slump in switching activity has led the Central Bank to open a public consultation.

The regulator said it wants the process of switching mortgage to be made easier.

Chief Economist of Investment Banking with Goodbody Dermot O'Leary believes the latest figures show a growing gap between mortgage approvals and draw downs.

He said: "Approvals and draw down trends are compared in the chart below. Both are clearly rising, but a mismatch is now opening up as approvals grow at a faster pace.

"In the 12 months to June 2017, there were 35,224 mortgage approvals for transaction purposes, compared to 27,124 mortgages that were drawn down.

"In percentage terms, this is the biggest gap since the data began in 2011.

"The scarcity of new supply coming to the market, relative to demand, is likely to be the main reason for this trend. In this environment it is inevitable that price inflation has accelerated."