Dublin: In August, the average interest rate on new Irish mortgages remained steady at 4.11% for the third consecutive month, despite a 0.25% European Central Bank rate cut in June, according to the Central Bank. This rate places Ireland’s mortgage costs among the highest in the eurozone, 40 basis points above the euro area average of 3.71%.
Fixed-rate mortgages, making up over two-thirds of new agreements, averaged 3.95%. The total value of new mortgage agreements fell by 13% to €851 million from July. Renegotiated mortgages amounted to €138 million, with an average rate of 3.87%.
Meanwhile, the average interest rate on household deposits with an agreed maturity dropped to 2.62%, below the euro area average of 2.96%. Despite ECB rate cuts in recent months, Irish lenders have been slow to reduce their rates, citing the incomplete pass-through of previous increases.
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