Irish interest rates fall slightly following ECB decision

Central Bank of Ireland data shows the weighted average interest rate on new Irish mortgages as of the end of September was 4.08%, down from 4.11% in August

Ireland has the sixth highest mortgage interest rates in the eurozone with Latvia, Estonia, and Lithuania topping the list.

The average interest rate in Ireland for new mortgages fell slightly during September following rate cuts announced by the European Central Bank (ECB) but not as fast compared to the rest of the eurozone

The ECB cut interest rates by 0.25% in September and again last month. The bank’s governing council is due to have its last meeting before the end of the year next month where another rate cut could be announced.

According to data from the Central Bank of Ireland, the weighted average interest rate on new Irish mortgage agreements as of the end of September was 4.08% down from 4.11% in August.

However, during that same period the equivalent euro area average decreased 3.71% to 3.59%.

Ireland has the sixth highest mortgage interest rates in the eurozone with Latvia, Estonia, and Lithuania topping the list.

The weighted average interest rate on new fixed rate mortgage agreements, which make up 70% of the volume of new mortgage agreements, was 3.93% in September.

The total value of pure new mortgages increased from €851m in August to €930m in September. Renegotiated mortgages totalled €229m.

In terms of consumer loans, the average interest rate increased by 0.04% to 7.74% during the month. The total value of new consumer loans was €214m.

Consumers putting their money into longer term savings vehicles continue to grow in popularity with €1.2bn saved — an 8% increase compared to August and a 31% increase from September last year.