A surge in approvals for first-time buyers contributed to a 25% year on year (yoy) jump in mortgage approvals in July, continuing an upward trend that has been in place since March. Irish mortgage approvals grew by 21% yoy in volume terms and by 25% yoy in value terms in July, according to data just published by the Banking and Payments Federation of Ireland (BPFI) this morning.
First-time buyers led the way, with approvals up by 35% yoy (+44% yoy by value). Taking the less volatile threemonth period to July, the number of approvals grew by 12% yoy. Approvals for house purchase grew by 13% yoy in the three months to July, with the value up by 17% yoy.
In both cases, this is the strongest performance since early 2018. While mortgage approvals may or may not lead to drawdowns, they have been a good guide in the past.
According to Goodbodystockbrokers, "It remains to be seen how Brexit uncertainty may lead buyers to defer purchasers as the Autumn selling season opens in September. These data suggest that it is not yet deferring potential buyers from at least commencing the mortgage process. See our note this morning for more details."