Growth in home loans continues
Term loans increased by 842m while residential mortgages showed an increase of €385m. That figure rises sharply to €1.1bn for the month, however, when account is taken of €750m secularisation by the lending institutions that masks the real lending level for house purchase.
Overall the bank’s figures show that the annual growth rate for mortgages was up by 23.9% in the year. That’s a marginal increase in the year to end of May when demand rose by 23.6%.
Private sector growth figures slowed in June and, on an adjusted basis, it was down from 15.5% in May to 13.5% in June, reflecting the continuing slow-down in economic activity.
Overall private sector credit was up by almost €900m during the month.
The growth rate for non-mortgage credit fell to 8.2% from a revised 10.4% in May.
Additional figures supplied by the Central Bank highlights the continuing strong growth in mortgage credit over the past 12 months.
Growth in mortgage lending to end July 2002 was up by 20% year on year.
For each successive month to June 2003 the figures have shown pretty solid growth with very minor dips in the growth figure up to last month.
By end June the total amount borrowed by home buyers since July of last year has increased steadily to stand at close to €52m.
In other words Irish residents have borrowed that amount over the period to buy houses which partly explains when house prices are still showing very strong growth.
The Construction Industry Federation released figures yesterday pointing out that up to 60,000 new homes will be completed this year up from 57,500 last year and still showing no sign of slow down.
The huge growth in mortgage lending has been running at about €1bn on average per month since last July and continues to show little sign of abating.
The CIF said yesterday that housing buoyancy was largely responsible for the fact that no jobs were lost in the sector over the past 12 months.
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