In December, housing loan interest rates in Ireland decreased to 3.80%, marking the most significant monthly drop in eight years, contributing to a favorable scenario for homebuyers amid limited housing supply. However, while the decrease is beneficial for new buyers, economists caution that it may contribute to rising property prices, which are increasing nearly 10% annually. Currently, Irish rates are higher than the Eurozone average of 3.35%, with rates across the Eurozone varying significantly from 1.85% in Malta to 4.40% in Latvia. Experts anticipate further rate cuts from the European Central Bank next year.
Over the past few months we've seen rate cuts from PTSB, Bank of Ireland, and many of the smaller mortgage players, so it's no surprise to see the average rate continue to fall.
The 0.17 percentage point monthly fall is actually the biggest drop since the data series began in 2017.
Falling lending rates are good news for new buyers scrambling to purchase a home in a market with very limited supply.
Economists warn that falling lending costs will keep property prices rising; they are currently going up at close to 10pc a year.
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