The average interest rate on new mortgages in Ireland fell by 0.32% to 3.38% in the year to October, but is still almost double the average euro zone rate of 1.74%.
Latest figures from the Central Bank also show the volume of new mortgage agreements for the 12 months to October was €4.8 billion.
New variable rate mortgages accounted for more than two thirds of all new agreements in the past year, whereas the equivalent euro area share for variable rate mortgages is below 25%.
The biggest drop was for principal dwelling homes (PDH) with standard variable rates, with the average rate falling by 0.49% to 3.47% during the first nine months of 2016.
However, the variable rate for buy-to-let (BTL) mortgages stood at 4.73% in September, dropping by 0.2% since January.
Yesterday, the Central Bank’s Director of Institutions Ed Sibley told the Oireachtas Finance Committee that four out of five borrowers on variable rate mortgages could save money if they switched to alternative products.
Fixed rate BTL loans rose by 0.43% to 4.84% during the same period.
The majority of BTL lending is at variable rates, accounting for over 90% of new draw-downs in the third quarter.
Meanwhile, the share of fixed rate mortgages has fallen so far in 2016, but still represents just over a third of all PDH loans.
Fixed rate mortgages fell by 0.23% in the year to September.
