Average mortgage rate unchanged for third consecutive month despite ECB cuts – Central Bank
The average interest rate on new Irish mortgages remained unchanged for the third month running in August at 4.11%, new figures from the Central Bank shows today.
The standstill comes despite a European Central Bank rate cut in June of 0.25%.
It means that the average cost of a new mortgage in Ireland remains the sixth highest in the euro area, at 40 basis points about the average for the bloc of 3.71%.
The average new fixed rate here was 3.95% in August, again unchanged from the previous month and eight basis points lower than the same period in 2023.
Fixed rates made up more than two thirds of the volume of new mortgages.
Overall, the volume of new mortgage agreements fell by 13% to €851m compared to the previous month.
There was also €138m of renegotiated mortgages during the month, down from €161m in July, with an average interest rate of 3.87%.
Meanwhile, the average interest rate offered on household deposits with an agreed maturity fell by 15 basis points in August to 2.62% compared to July.
This compared to an average rate across the euro area of 2.96%.
The ECB has now cut interest rates twice in recent months – by 0.25% in both June and September.
It is also expected that it will cut rates again on Thursday when the Governing Council meets.
Irish lenders have been slow to cut their lending rates following the ECB changes, arguing that they did not pass on the full increases over the last two years.
Article Source – Average mortgage rate unchanged for third consecutive month despite ECB cuts – Central Bank – RTE
