Mortgage Interest Rates in Ireland Dip Again in March, Easing Costs for New Homebuyers
Dublin – Mortgage interest rates in Ireland continued to decline in March, providing a welcome boost for new homebuyers. According to the latest data from the Central Bank, the average interest rate on new mortgages fell to 3.77%, down from 3.79% in February.
The report also highlights that Ireland has climbed to sixth place among eurozone countries for new mortgage rates, up from eighth position last year. Despite the positive movement, the euro area average interest rate remains lower, holding steady at 3.33%.
Surge in Mortgage Lending
The total value of new mortgages issued in March reached €904 million, representing a 16% increase from February (€125 million) and a 43% year-on-year rise (€274 million), according to figures from the Central Statistics Office (CSO).
Fixed-rate mortgages dominated the market, accounting for 77% of new lending, with an average rate of 3.58%. This marks a slight month-on-month decline of two basis points and a 61 basis point drop compared to March 2024.
Variable-rate mortgage contracts averaged 4.42%, reflecting a 17 basis point decrease year-on-year.
Meanwhile, interest rates on overnight household deposits remained unchanged at 0.13%, consistent with rates seen since November 2024.
Outlook: Further ECB Easing Expected
The European Central Bank (ECB) has implemented seven consecutive interest rate cuts since June 2024 in a bid to stimulate economic growth. Analysts anticipate further monetary easing later this year, which could continue to support more favourable borrowing conditions for Irish mortgage seekers.
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