New mortgage interest rates drop ahead of European Central Bank meeting later this month

Sharp increase in energy prices could prompt ECB to hike interest rates when it meets later this month

ECB president Christine Lagarde is due to meet with the rest of the bank's Governing Council at the end of the month to discuss interest rates. 

The average mortgage interest rate declined slightly in the year to the end of February to 3.51%, but increasing energy prices due to the conflict in the Middle East could force the European Central Bank (ECB) to hike rates once again when it meets at the end of this month.

According to new data from the Central Bank of Ireland, the weighted average interest rate on new Irish mortgage agreements at end-February 2026 was 3.51%, down 28 basis points annually. The average rate across the eurozone stood at 3.41%.