Irish mortgage interest rates are above European average

Mortgage interest rates in Ireland are slightly above the EU average, latest figures from the Central Bank show. 

The weighted average interest rate on new fixed rate mortgage agreements, which constitute the majority (85%) of the total new mortgage agreements, was 4.04 per cent in July.

This represents an increase of 2 basis points from June and 154 basis points higher on an annual basis.

That compares to 4.04% in June.

Latvia has an interest rate just over 6%, with Estonia and Lithuania both above the 5% rate. 

While there was only a small month on month increase in Ireland, when compared to July of last year, new mortgage interest rates are 1.43% higher.

The total volume of pure new mortgage agreements amounted to €870 million in July, a 14per cent increase on the previous month, and a decrease of 4 per cent in annual terms.

Mortgage interest rates have increased over the past year or so, with the ninth interest rate increase by the European Central Bank in July.