The Central Bank of Ireland reports a further decrease in the value of mortgage loans as we reach the middle of the year, due to intense rivalry for housing and the anticipation of additional reductions in interest rates by borrowers later in the year.
As indicated by the latest figures on retail interest rate, new mortgage agreements in June saw a 6 per cent dip, amounting to €808 million, a 2 per cent drop from May’s figures.
On the other hand, there was a slight uptick in the number of house purchasers opting for fixed-rate mortgages, increasing from 66 per cent in May to 70 per cent. Concurrently, the average interest rate for new-fixed term mortgages decreased by 0.7 percentage points to 3.95 per cent, as stated by the Central Bank.
This development follows the European Central Bank’s decision to reduce its key deposit rate from an all-time high of 4 per cent to 3.75 per cent in the month of June. Further updates are to be expected…