Irish mortgage rates now fifth highest in euro area
The Central Bank said the weighted average interest rate on new Irish mortgages at the end of April was 3.72%, down five basis points from 3.77% in March and 52 basis points lower than the same time last year.
But it compares to the euro area average of 3.34%, which was up a single basis point from the previous month.
Latvia had the highest rate at 4.4%, followed by Estonia at 3.98% and Lithuania at 3.81%. Malta had the lowest rate in April at 1.69%.
The Central Bank said the total volume of pure new mortgage agreements was unchanged at €904m in April from March, while they were up 30% on an annual basis.
Today's figures show that the weighted average interest rate on new fixed rate mortgage agreements - which constitute 81% of the volume of new mortgage agreements - was 3.55% in April, three basis points lower than March and 58 basis points lower than in April 2024.
Meanwhile, the weighted average interest rate on new variable rate mortgage agreements was 4.45% in April, three basis points higher than in March and eight basis points lower in annual terms.
Commenting on today's figures, Trevor Grant, chairperson of Irish Mortgage Advisors, said that while the average interest rate on new mortgages continue to fall, Ireland is now the fifth most expensive country in the euro zone for mortgages – up from the sixth most expensive ranking it held in March 2025.
"The ECB rate cut earlier this month could see average mortgage interest rates continue to fall in Ireland in the coming months, meaning sub-3% mortgage rates could become more widely available in Ireland," Mr Grant said.
He noted that earlier this month, Avant Money became the first lender to start offering sub-3% mortgage rates here with rates on its new Flex mortgage product now starting from 2.98%.
"This marks the first time mortgage rates have dipped below the 3% threshold since 2022, marking a significant milestone for Irish borrowers. We'd expect more lenders to follow suit, with homeowners and house buyers set to enjoy substantial savings on their mortgages as a result," he added.
He said that with the ECB appearing to be adopting a more cautious tone around rate cuts now, mortgage borrowers and would-be house buyers should exercise a certain amount of prudence though.
"This month's ECB rate cut was the eighth reduction in a row so interest rates have already fallen substantially over the last year. This means the pace at which the ECB is cutting rates could slow now and the June rate cut could be the last reduction from the ECB for some time. Borrowers should therefore avoid making large financial decisions now based on the hope rates will fall substantially in the future," he added.
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