New mortgage interest rates in Ireland fell below the EU average for the first time since February 2023 in June.
That’s according to new data from the Central Bank which found that average mortgage interest rates rose marginally from 3.48% in May to 3.49% in June.
That is just below the euro zone average of 3.51% for the month but was down 11 basis points compared to last year, dropping the rate below the EU average for the first time in 40 months.
The Irish rate is now the 12th highest in the bloc, down five places from June 2025.
The weighted average for new fixed-rate mortgages, which accounts for 93% of all new mortgages, stood at 3.46%, two basis points higher compared to May but down six compared to June last year.
The weighted average interest rate on new variable-rate mortgage agreements was 3.96% in June, the lowest level since December 2022 — down seven basis points from May and by 12 basis points year-on-year.
The total volume of new mortgage agreements increased to €1.1bn in June, up €129m compared to May, and up €86m compared to June last year.
Renegotiated mortgages totalled €586m in June, €80m higher than the previous month and €301m higher than June 2025. By the end of June, 94% of renegotiated mortgages had fixed interest rates.
The latest figures coincided with the 0.25 percentage point increase in the European Central Bank's main interest rate in June, which was prompted by rising inflation in the region.
The ECB is expected to raise rates again in September.
The latest Central Bank data also shows that, while Irish mortgage customers are doing slightly better than their European peers, savers here remained at a disadvantage.
The average rate offered on deposits in Ireland stood at 0.14% in June, compared to the euro zone average of 0.28%. Irish customers who put savings into longer-term deposit accounts secured an average rate of 1.86% in June, compared to the euro area average of 2.09%.
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