The interest rate on new mortgages offered by banks are half a percentage point lower than they were a year ago, according to new data from the Central Bank.
However, Irish homebuyers are still paying 0.46 percentage points more than the average across the euro zone.
People taking mortgages in Ireland are paying an average of 3.79% compared to 3.33% in other countries which use the euro, making Ireland the fifth most expensive country in the euro zone.
The drop in interest rates reflects a series of cuts by the European Central Bank as inflation has eased and the cost-of-living crisis has abated.
The Central Bank said the interest rate on new consumer loans was 7.29% in February 2025, a rise of 0.42 of a percentage point in the month but down 0.23 percentage points in the year.
As the ECB has been cutting rates, the returns for savers have also fallen.
Term deposits are down 0.26 of a percentage point over last year to 2.33% while overnight deposits are unchanged at 0.13%.
