Mortgage rates in Ireland rise above eurozone average with more increases to come
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Mortgage rates in Ireland have risen higher than the eurozone average, according to latest figures from the Central Bank.
The average interest rate for a new mortgage climbed from 3.6% in April to 3.8% in May, following more interest rate hikes by the European Central Bank to get inflation under control.
The rate has surpassed the eurozone average of 3.7%, which also continues to rise due to tightening of monetary policy.
Rates are set to increase further this year in response to more hikes to come from the ECB, according to Daragh Cassidy with comparison site Bonkers.
“The average tracker customer could soon be paying a rate of around 5.6% or 5.7% while the best rate available to prospective first-time buyers will likely be over 5% by the end of the year,” he said.
The Central Bank figures also showed the total volume of new mortgage agreements amounted to €869m in May, a 9% increase on the previous month, and an increase of 25% in annual terms.
Ireland’s mortgage rates are the sixth lowest in the eurozone despite the month-on-month jump.