Irish mortgage rates static as period of decline ends

The weighted average interest rate on new fixed-rate mortgage agreements, which constitute 86% of the volume of new mortgage agreements, the highest share since August 2023, was 3.52% in July (AP Photo/Bernd Kammerer, File)

The average interest rate on new Irish mortgages was 3.6% at the end of July, which remained unchanged from the previous month, new figures from the Central Bank of Ireland show.

Data released on Wednesday found that the average new mortgage rates was 51 basis points lower compared to the same period last year, with the equivalent euro area average for July 2025 being 3.3%.

Irish mortgage rates exceeded the euro average by 30 basis points, the regulator found, with Ireland maintaining the 7th position across the euro area in the month.

The weighted average interest rate on new fixed-rate mortgage agreements, which constitute 86% of the volume of new mortgage agreements, the highest share since August 2023, was 3.52% in July, which was unchanged from the previous month and down by 43 basis points compared to July 2024.

Meanwhile, the weighted average interest rate on new variable rate mortgage agreements was 4.09% in July, just one basis point down from June and 36 basis points lower in annual terms.

The total volume of pure new mortgage agreements increased to €1.2bn in July, which was 19% higher in annual terms. 

“It is disappointing that today’s report shows that the average interest rate on new mortgages in Ireland remains static," said Fiona McMahon, Senior Mortgage Advisor of NFP Ireland.

"This marks a change in the trend which developed earlier this year, which saw the cost of Irish mortgages consistently falling. The static mortgage costs will be a concern to many existing mortgage holders and would be house buyers."

Ms McMahon added that mortgage holders should be mindful there could be a limit to the extent to which mortgage interest rates could fall going forward. 

"Following a pause in ECB rate cuts last July, the ECB is expected to leave its interest rates untouched at its meeting tomorrow," she said. 

"Furthermore, as eurozone inflation appears to be under control and the bloc’s economy is showing resilience, it’s looking unlikely that there will be any more ECB rate cuts over the coming months. This could put the brakes on any further falls in average Irish mortgage costs in the near future.

"Whether or not the ECB is done cutting its rates remains to be seen though. If the eurozone economy were to weaken in the coming months, the ECB may well cut rates again in an attempt to bolster growth, though any future rate cuts are only likely to be few in number."

Meanwhile, the interest rate on new consumer loans decreased by 62 basis points to 7.29% in July 2025, while total volume of new consumer loans was €311m in July, 60% of which had a floating rate. 

New floating rate consumer loans had a weighted average interest rate of 8.63% at the end of July, while fixed rate consumer lending had a weighted average interest rate of 5.29%, the Central Bank found.