House prices and mortgage credit: Empirical evidence for Ireland – An update

In the Quarterly Economic Commentary Research Note ‘House prices and mortgage credit: Empirical evidence for Ireland – An update’, the relationship between mortgage credit and house prices in the Irish residential market is examined. Models for house prices and mortgage credit are estimated. The results indicate that a strong mutually reinforcing relationship exists between mortgage credit and house prices, with movements in one variable likely to cause movements in the other.