Nearly 5,000 mortgages were approved last month.
That's down 3% on the figures for May, and down 20% compared to last June.
Almost two thirds of mortgages approved last month were for first-time buyers, according to the Banking and Payments Federation.
Its chief executive, Brian Hayes says there are a number of reasons for the drop in approvals.
"Last year was an exceptional year. A lot of people got ahead of the rise on the ECB side, and they switched their mortgage to more fixed products over a three year period.
"Secondly, last year was exceptional because we saw this very pent up demand during Covid as people stood back from the market, and then dipped their toe in the market again after Covid."
