The average interest rate on new mortgages in Ireland rose in January to the seventh highest in the Eurozone.
That’s according to new data from the Central Bank.
The average interest rate for January was 4.27%, up 0.08% from a month earlier.
It means rates on new mortgages in Ireland are now the seventh most expensive in the euro area, an increase from 11th place in December.
In the same month, the equivalent average interest rate across the euro area fell by 0.10%, to 3.96%.
This is because in some countries the cost of raising funds on capital markets has eased recently ahead of an expected drop in ECB rates over the coming months.
The Central Bank data shows that average rates on new home loans were 1.34% higher than they were in January of last year.
Fixed rate mortgages make up three quarters of new lending at the moment and the average rate on these climbed 0.06% to 4.2%, while the average rate on new variable mortgages rose 0.07% to 4.47%.
Meanwhile, on savings the Central Bank data shows that rates on new overnight deposits by households rose to 0.13% in January, the highest level since December 2016.
However, the average rate on new household term deposits actually fell 0.22% to 2.51% during the month. This compares to 3.2% in the euro area.
€1.19bn was moved by households into Irish based term deposit products during the month, a 24% increase on December – a sign that the inertia among savers is starting to decline.
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