House prices are still rising, but at a slower rate.

Mortgage losses among Irish banks are showing tentative signs of stabilisation with the latest figures from the Central Bank showing the rate of increase in mortgage arrears at its lowest level since the first three months of 2011.

Concerns have been raised over the potential of the latest EU agreement to reduce Ireland’s debt to manageable levels and pave the way for a return to sovereign bond markets in 2013.

Davy's has revised downward its prediction for the Irish economy.