Dublin: Mortgage rates in Ireland dropped by 51 basis points in the year to June, making the country the seventh-highest in the eurozone, up from eighth in May, according to Central Bank data.
The weighted average interest rate for new mortgages stood at 3.6% in June, down from 4.11% a year earlier but still above the eurozone average of 3.29%. Fixed-rate loans, which account for 85% of new agreements, averaged 3.52%, while variable rates fell to 4.08%.
Mortgage lending volumes rose 23% annually to €996 million, while renegotiated loans totalled €285 million, with fixed-rate renegotiations making up 64% of the total.
Industry experts warned that while competition is gradually easing rates, factors such as lender capital requirements and repossession challenges keep Irish rates high. They also cautioned that the European Central Bank’s pause on rate cuts could signal the end of reductions, with potential rate hikes in 2026 if inflation rises.
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