The average Irish mortgage rate inched higher in August, according to new figures from the Central Bank.
Their latest reports shows that the weighted average interest rate on new Irish mortgages in August was 3.53%, up a basis point from July and down five basis points on the same time last year.
This compares with a euro area average of 3.62% in August.
Ireland had the 11th highest weighted average rate in the euro area at the end of August, down from 9th highest in July.
The latest figures show that Latvia, Estonia and Lithuania had the highest mortgage rates at 4.47%, 4.39% and 4.17% respectively, while Malta at 1.88% and Bulgaria at 2.4% had the lowest.
The Central Bank said the weighted average interest rate on new fixed rate mortgages - which make up 94% of the volume of new mortgages, was 3.49% in August, up one basis point from the previous month.
Meanwhile, the weighted average interest rate on new variable rate mortgage agreements was 4.16% in August, seven basis points up from July and seven basis points higher than the same month last year.
The total volume of new mortgages decreased to €1.3 billion in August, 9% lower on the previous month.
August’s figures also did not take into account the European Central Bank’s (ECB) latest rate increase in September. The bank is expected to hike rates again in December in a bid to quell inflation.
The next ECB announcement is scheduled to take place on October 29th.
The latest Central Bank figures also indicated the weighted average interest rate on household overnight deposits stood at 0.22 per cent in August. Irish households are estimated to hold up to €175 billion on deposit with Irish banks, a substantial portion of held in overnight deposit accounts, which pay very low returns.
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