Mortgage rates in Ireland have continued to decline despite recent interest rate hikes announced by the European Central Bank.
The central bank said the average interest rate for new Irish mortgage transactions in July was 2.63%, down 10 basis points from July 2021.
The data shows that the average interest rate in Ireland fell for the fourth consecutive month, while the average rate in the euro area rose to 2.08%, the highest level in more than five years.
Data for July shows that it is the first time in more than two years that Ireland is not among the three most expensive countries in terms of interest rates. Greece, Germany and Latvia have the highest rates than Ireland, while Spain, Austria and France have the lowest rates.
The central bank said the average interest rate on fixed-rate mortgages, which account for more than 88% of all new business, was 2.50%. For new variable rate mortgages, the average interest rate decreased by 15 basis points to 3.6%.
The total amount of the new loan agreements in July reached 840 million euros. This represents a 17% increase in July 2021 and a 2% increase over the previous month.
Mortgage converter bonkers.ie’s Dara Cassidy said Ireland finally has European-wide mortgage rates, but it’s almost guaranteed that the attached rates will rise in the coming months.
“Unfortunately for homeowners, the European Central Bank has indicated that it will continue to raise interest rates in the coming months. The ECB is likely to raise rates to around 2% by the end of the year and could move closer to 3%. % in 2023., “He said.
“Most of this increase will eventually be passed on to mortgage clients. To what extent depends on the competitive pressure felt by the banks ”.
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