New data from the Central Bank shows that the average interest rate on new mortgages in Ireland fell to 3.56 percent at the end of October. This represents a slight monthly decrease and the lowest level recorded since March 2023. Although rates have eased, Ireland still ranks among the higher-cost mortgage markets in the euro area, placing sixth compared with other member states.
Across the euro zone, the equivalent average stood at 3.33 percent. Latvia recorded the highest rate at 3.96 percent, followed by Estonia and Germany, while Malta had the lowest at 1.96 percent.
Fixed rate products continue to dominate the Irish market. In October, they accounted for 90 percent of new agreements, with an average rate of 3.49 percent. This reflects a modest monthly reduction and a more substantial decline compared with the same month last year. Variable rate mortgages told a different story, rising to an average of 4.17 percent, although these rates remain lower year on year.
The overall value of new mortgage lending fell to €1.1 billion in October, reflecting a slowdown in activity. Deposit rates offered little movement, with household overnight deposits remaining at 0.13 percent, unchanged since late 2024.
Industry commentary suggests that borrowers will welcome the easing of mortgage costs, especially after September’s uplift had raised concerns about a possible reversal in the downward trend. Donal Magee, Senior Underwriter at Nua Money, noted that borrowers should remain cautious. With the European Central Bank signalling limited scope for further rate cuts, and even suggesting the possibility of an increase, household budgeting will remain important.
He also pointed to forecasts indicating robust economic performance in 2025 but a potential slowdown in 2026. Should financial conditions tighten, borrowers who take on higher levels of debt could face increased pressure.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
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