Rate on a new mortgage hits its highest level in years - RTE Radio 1
New figures from the Central Bank of Ireland show that the average interest rate on a new mortgage has breached the 4% mark for the first time in years.
Daragh Cassidy, Head of Communications at bonkers.ie, spoke on Drivetime about how mortgage rates in Ireland compare to our European neighbours.
- The average interest rate on a new mortgage jumped from 3.8% in May to over 4% in June.
- This is the first time in years that we've breached the 4% mark and it is the second biggest rate hike in the Eurozone.
- Mortgage interest rates vary across Europe. Rates are still under 2% in Malta but are 6% or higher in some of the Baltic countries like Latvia and Lithuania. Ireland is in the middle of the table.
- The average rate here is 4.04% which isn’t bad compared to other European countries, however, it is still having a negative effect on Irish mortgage applicants and holders.
- The impact of the rate hikes from the European Central Bank is now well and truly being felt by consumers and it may raise rates even further in the future.
- Consumers may not see rates fall until early 2025 and even then it looks like higher interest rates are here for the foreseeable future.
- Consumers need to prepare and budget for the rate increases that may come further down the line.
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