The average interest rate on new mortgages jumped sharply in March, according to figures published on Wednesday by the Central Bank, and are now above the European average.
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People taking out new home loans last month signed up to an average mortgage rate of 3.54 per cent. That compares with an average of 2.92 per cent in February and 2.78 per cent in March last year. Photograph: iStockThe average interest rate on new mortgages jumped sharply in March, according to figures published on Wednesday by the Central Bank.
A dramatic 62-point jump in the average mortgage rate pushed Ireland back above the euro zone average for the first time in six months. However, mortgages in Ireland are still the fourth-lowest across the euro zone, behind only Malta, France and Spain. People taking out new home loans last month signed up to an average mortgage rate of 3.54 per cent. That compares with an average of 2.92 per cent in February and 2.78 per cent in March last year. The average rate for mortgage loans also increased across the euro zone but by a more modest 0.19 of a percentage point, bringing it to 3.52 per cent.
Rates in Ireland surged in March as lenders here started passing on a greater portion of recent increases imposed by the European Central Bank. Until now, rates had been rising more quickly elsewhere in the euro zone as banks on the Continent moved more quickly to pass on ECB rates that have jumped by 3.75 percentage points since last July.
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