The demand for mortgages may have peaked, according to credit figures released today that show a marked slowdown in lending in February.
Credit statistics from the Central Bank released today show the value of mortgages increased by about €800 million in February. This was well below the average monthly increase in the second half of last year and was also some €80 million lower than in February 2004.
The Central Bank cautioned that although too much emphasis should not be placed on a single month's data this does provide a further indication that demand for residential mortgages may have peaked.
Annual growth in residential mortgage lending declined again in February, for the seventh consecutive month, with the underlying growth rate falling to 25.5 per cent from 26 per cent in January.
The statistics show that overall credit regained upward momentum in February, when the underlying growth rate rose to 26.9 per cent from per cent in the previous month.
As has been the norm since October of last year, non-mortgage credit accounted for most of the monthly increase in private-sector credit (PSC). In February, non-mortgage credit accounted for over 60 per cent of the €3 billion rise in PSC; its year-on-year growth rose to 25.3 per cent from 24.8 per cent in January.