The average interest rate on new mortgages in Ireland eased very slightly in October, new data from the Central Bank shows.
But at the same time the average interest rate offered on term deposit accounts rose to its highest level in 14 years.
At the end of the month, the average rate on new mortgages stood at 4.27%, down from 4.3% a month earlier.
This compares to a euro area average of 4.07%.
It means the average Irish mortgage rate has fallen back to the eighth most expensive in the euro area, from sixth place in September.
In comparison to October of last year, mortgage rates in Ireland have risen by 1.7%.
The average interest rate on new fixed Irish mortgages, which now make up the bulk of fresh loans for home purchases here, was 4.23% in October, down just 2 basis points from September.
The new average fixed mortgage rate is now 1.77% lower than in October of last year.
The average variable rate came in at 4.46% in the month, down 3 basis points compared to September and 0.56% versus the same month a year ago.
The total value of new mortgages reached €843m in the month, up 18% on September, but down 23% on the same time last year when switching activity was high.
Meanwhile, interest rates on deposit rates being offered to households climbed slightly in October.
The average overnight deposit rate, for demand and current accounts, inched up 1 basis point to 0.12%, leaving it at the highest level since November 2016.
Today’s figures also show that the average rate on term deposit accounts went up 5 basis points to 2.59%.
It now stands at the highest level since January of 2009, but still well below the euro area average of 3.27%.
The level of new business in this category was higher than in any month since January 2021 at €1.34 billion, the Central Bank said, a 44% increase on September and an 800% increase on October last year.
Article Source – Interest rate on new mortgages dips in October – Central Bank – RTE
