Ireland's mortgage rates drop again as banks hold off passing on ECB hikes

Ireland's historically high rates are dropping closer to the European average

Unlike other European countries, banks in Ireland have yet to pass on the three interest rate hikes already announced by the ECB since July. Picture: iStock

Average mortgage interest rates in Ireland fell again in September as banks continue to hold off on increasing rates in response to a combined 2% increase by the European Central Bank (ECB).

New figures from the Central Bank of Ireland show the average rate on new mortgage agreements in September fell by 6 basis points to 2.58% compared to August. In the same period, the equivalent euro area average rose by 19 basis points to 2.4%.