A sobering tale is revealed by mortgage data.

The housing market has always been an integral part of the economy, and for many, the dream of homeownership remains a significant milestone. With so much focus on the escalating prices of homes in recent times, the affordability and accessibility of mortgages have become a topic of discussion. However, the latest data from mortgage lenders reveals a troubling trend, painting a sobering picture of the state of the housing market. From declining loan approvals to a rising number of delinquencies, this data tells a tale that demands attention.


The recent mortgage data published by Banking and Payments Federation Ireland (BPFI) shows that higher interest rates have impacted consumer behavior. In February, there was a significant decline in mortgage activity, with both the number of home loans approved and the value of mortgages dropping. Aspiring homeowners and lenders are adjusting to a new climate where interest rates have risen and there is increasing uncertainty about job security, especially in the tech sector. The recent ECB interest rate rise will only worsen the situation. According to BPFI, there were 3,378 mortgages approved in February, down 8.6% compared to the previous month and 13.3% compared to the same month last year. The aggregate value of those approvals is down nearly 7% compared to the previous month and 8.1% year-on-year. While the significant slowdown in the number of homeowners switching to secure better rates is a factor, there is also a marked pulling in of horns in the wider market. However, the average loan size in February increased by 6.7% compared to the same month last year, which could be due to the loosening of Central Bank rule.


As we analyse the latest mortgage data, it’s clear that there are some harsh realities facing homeowners today. With record high defaults and foreclosures, it’s evident that many are struggling to keep up with their mortgage payments, especially in the current economic climate. However, it’s important to remember that there are resources available to help those in need. Whether it’s seeking out financial counselling or exploring loan modification options, there are steps that can be taken to protect your home and avoid the devastating consequences of foreclosure. By staying informed and taking action early, we can proactively address the challenges and work together to ensure a stable future for homeowners and the wider housing market.