Irish Mortgage Rates Hit Two-Year Low in May
In May, Irish mortgage interest rates dropped to their lowest levels in over two years, according to the Central Bank of Ireland. Despite the decrease, Irish rates remained higher than the euro zone average. The average interest rate for new home purchase loans was 3.66%, down from the previous year. Irish mortgage rates ranked eighth highest in the euro area, a drop from fifth place in April.

The average Irish mortgage interest rates reached a two-year low in May, according to the Central Bank of Ireland. The weighted average interest rate for new home purchase loans was 3.66%, down by 0.5 percentage points from the previous year. Despite the decrease, Irish mortgage rates remained higher than the euro zone average, ranking as the eighth highest in the euro area.
Darragh Cassidy from Bonkers.ie noted that Irish mortgage rates are currently at their lowest in over two years, with potential for further cuts by the European Central Bank. He advised borrowers to explore different rates in the market and consider using mortgage brokers for better deals.
Fiona McMahon of NFP Ireland mentioned that some lenders, like Avant Money, have responded to the recent ECB cut by reintroducing rates below 3%. However, such competitive pricing is still uncommon in the market.
Trevor Grant, chairman of Irish Mortgage Advisors, acknowledged the positive trend of decreasing rates but highlighted that Irish borrowers still pay more compared to their euro area counterparts. He suggested that the gap might narrow in the future if lenders adapt to changing conditions.
Recent data from the Banking and Payments Federation of Ireland revealed a 36% increase in median mortgage values for first-time buyers since 2019, nearing €300,000. Mortgage approvals have also hit record levels, indicating strong buyer demand, especially among first-time buyers.
In May, the total value of new mortgages agreed in Ireland was €943 million, marking a 15% increase from the previous year.
According to the source: The Irish Times.
What's Your Reaction?






