Interest rates on new mortgages now sixth highest in eurozone
3% Average Which Rate Of The For Eurozone Mortgages — Now Average 4 Higher The Than New 4% Is Interest Is
The average Irish interest rate on new mortgages is now the sixth highest in the eurozone as rate hikes from the European Central Bank (ECB) slowly feed through the financial system, according to new figures from the Central Bank of Ireland.
While the ECB has been increasing interest rates since July last year — only pausing last month — Irish banks have been slow to pass on all the increases to customers.
During September, the average mortgage interest rate is 4.3% — an increase of 0.2% compared to August, when rates were the 11th highest across the eurozone.
The eurozone average is 4%.
The countries which have higher rates than Ireland include Latvia at 6.2%, Estonia at 5.82%, Lithuania at 5.8%, Finland at 4.72%, and Slovakia at 4.2%.
Malta, France, and Spain all now offer the lowest rates on new mortgages, at 1.89%, 3.73%, and 3.78% respectively.
The total volume of pure new mortgage agreements amounted to €716m in September, a 28% decrease from the previous month, and a decrease of 35% compared to the same month last year.
Renegotiated mortgages totalled €301m in September compared to €185m recorded in August, which was the lowest level recorded at any time over the last 12 months.
The interest rates offered by banks on fixed-term savings accounts also increased during September. The weighted average interest rate on new household deposits with agreed maturity rose by 0.45% to 2.54%.
The equivalent rate in the eurozone was 3.08%.
The level of new business in this category was higher than in any month since January 2021 at €933m, but still well below historical levels seen pre-2021.