Rising rates in other countries mean static mortgage interest rates in Irish market compare more favourably via IrishTimesBiz
Rising interest rates across the euro zone mean that Irish mortgage rates have now dropped below the EU average for the first time since the Central Bank started tracking the data five years ago. Photograph: Daniel Roland / AFP via Getty ImagesIrish average new mortgage rates fell below those across the wider euro zone in October for the first time since the Central Bank started compiling comparative figures in 2017.
The Central Bank said that the average interest rate on new Irish home loans dipped by 0.01 of a percentage point on the month to 2.57 per cent in October, during a period in which the average rate across the euro zone rose by quarter of a point to 2.65 per cent. Irish banks have lagged many European peers in raising interest rates as the European Central Bank hiked its main lending rate from zero to 2 per cent since July, as they are more reliant on deposit funding for their mortgage portfolios than market based finance. Irish nonbank lenders have been hit by a spike in wholesale funding rates this year and have had to increase rates more aggressively than the traditional banks.
The banks have also received an income boost as the ECB switched from charging them negative rates of minus 0.5 per cent on money deposited with the ECB by the banks to paying them a rate of 1.5 per cent as the Frankfurt-based organisation increased its main rates.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Irish mortgage rates fall below euro zone averageThe average interest rate on new mortgages at the end of October decreased by one basis point to 2.57% from September while the equivalent euro area average rose by 25 basis points to 2.65%.
Read more »
Bank of England warns of rising pressure on householdsThe Bank of England has warned today about 'significant pressure' on households and businesses due to higher inflation and borrowing costs, but said they were more resilient than before the global financial crisis.
Read more »
Irish grocery inflation tops the UK to hit record levelPrices jumped as businesses passed on rising costs, such as soaring energy bills
Read more »
Central Bank has sold 90% of IBRC-linked bondsThe bonds date back to the liquidation in early 2013 of IBRC and restructuring of promissory notes the Government had used to bail out Anglo Irish Bank and Irish Nationwide
Read more »
Irish social media influencers failing to label ads amid calls for crackdownThe Competition and Consumer Protection Commission (CCPC) has today published its social media influencers report, which found that failure to label ads is widespread throughout the industry.
Read more »
Meteor shower set to light up Irish skies tonight and tomorrowThe Geminid meteor shower occurs every December.
Read more »