DAVY VIEW

Irish mortgage approvals hit a fresh cyclical high of €1.5bn in May, up 25% on the year. However, this was mainly driven by the prospect of ECB rate hikes, with approvals for re-mortgaging up 130% to €329m. Approvals for house purchase were €1.1bn, up 11% on the year. The mortgage market is still providing impetus to house prices. The average approval was €277,400 in May, up an enormous 10.6% on the year.