The rate of borrowing by house buyers eased in January reflecting an slowing in demand in the house market, according to monthly data released by the Central Bank this morning.
The increase in residential mortgage lending was just over €700 million in the month compared to €1.7 billion in December.
The figure was still larger than in January 2003 and the year-to-year growth rate, adjusted for securitisations, rose to 25.8 per cent from a revised 25.5 per cent in December.
Overall private-sector credit grew by 18.7 per cent from 17.9 per cent in December.
The Central Bank said "the acceleration in private-sector credit growth which was evident in the second half of 2003 continued in January".
Demand for non-mortgage credit accounted for about two-thirds of the €2 billion rise in private-sector credit during the month, and as a result, there was a marked rise in its growth from a revised annual rate of 13.5 per cent in December to 14.6 per cent in January.
