DAVY VIEW

This morning’s Banking & Payments Federation Ireland (BPFI) data show that housing demand remains resilient. The €1.2bn of mortgage approvals in August were up 14% on the year, or by 7% in volume terms. The average mortgage approval broke through €300,000 for the first time, up 5.8% on the year. Meanwhile, we estimate residential transaction volumes in Q3 were up 5% on 2022, again pointing to housing activity being resilient to ECB rate hikes.