New mortgage agreements fell 35% year-on-year in July, according to figures published by the Central Bank of Ireland.

However, an increase of 13% was recorded when compared with the previous month, the second consecutive monthly increase since March.

The figures show that the volume of new mortgage agreements in July amounted to €556 million.

Fixed rate mortgages accounted for 76% of all new agreements in the three months to July. This compares with 84% of new contracts for the same period in the euro area.

€445 million was agreed in new fixed rate mortgages, a decrease of 31% on July the previous year.

New variable rate mortgage agreements declined by 46% year-on-year, to €111 million.

The figures reveal that Ireland had the third highest mortgage interest rate across the euro area in July.

The weighted average interest rate stood at 2.82%, up 3 basis points on the previous month.

Meanwhile, the average for the euro area stood at 1.35% in the same month, although the rate varied considerably across countries.

Consumer lending agreements stood at €221 million in July, an increase of 59% on the previous month, although the figures show lending continues to remain lower in year-on-year terms.

The average interest rate was 7.08%, the equivalent euro area rate stood at 5.22%.