The number of new mortgages being issued has dropped by 25 per cent over the last 12 months, according to the Irish Bankers' Federation (IBF).
But the IBF figures show resilience in the first-time buyers' market, investment mortgages and the number of home-owners switching lenders.
The IBF/PwC Mortgage Market Profileshows that 40,992 new mortgages to the value of almost €9 billion were issued during the third quarter of 2007.
The first-time buyers' market is broadly holding its overall share at 19.1 per cent of all new lending by volume. The volume of switching activity continues to increase and now accounts for 17.4 per cent of new mortgage lending.
Residential investment letting has picked up to record growth of 15.2 per cent between the second and third quarters of 2007, accounting for 19.4 per cent of new lending, by value.
"While the mortgage market continues to adjust to more sustainable levels of new lending, the market continues to grow in absolute terms with the total mortgage book now standing at €136 billion," said IBF Chief Executive Pat Farrell.
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