Interest rates hold steady ahead of ECB meeting

Average interest rate on new Irish mortgage agreements as of the end of July stood at 4.11%, unchanged from June, Central bank data shows

Ireland has the sixth highest mortgage interest rates across the eurozone.

The average interest rate for new mortgages held steady during July ahead of a meeting of the European Central Bank on Thursday, where a rate cut is expected to be announced.

According to new data from the Central Bank of Ireland, the weighted average interest rate on new Irish mortgage agreements as of the end of July stood at 4.11%, unchanged from June but up 0.05% from the same month last year.

This figure is a combination of new fixed rate and variable rate mortgages.

Ireland has the sixth highest mortgage interest rates across the eurozone. The average rate across the eurozone stands at 3.72% The average for fixed rate mortgages — which make up 69% of the volume of new mortgage agreements — stood at 3.95%. The average variable rate stood at 4.45%. 

The total volume of new mortgage agreements rose to €980m in July, a 21% increase compared to June. Renegotiated mortgages totalled €161m during the month.

In terms of consumer loans, the average interest rates dropped month-on-month by 0.57% to 7.42%, which is the lowest it has been since January this year. The total volume of new consumer loans during July was €306m.

The average interest rate on new household  savings with agreed maturity rose to 2.77%. The equivalent rate in the eurozone was 3%.

However, more people are moving their money into longer-term savings vehicles, with €1.4bn being saved during the month — up 38% compared to June and up 178% compared to July last year.