New figures from the Central Bank show that the average interest rate on new Irish mortgages at the end of August was 3.58%, down two basis points from July and down 53 basis points from the same time last year.
This compares to the euro area average of 3.36%.
At the end of August, Ireland had the eighth highest average interest rate on new mortgages in the Euro Area, falling from seventh at the end of July.
Today's figures show that the average interest rate on new fixed rate mortgage agreements - which constitute 87% of the volume of new mortgages - was 3.5% in August, down 2 basis points from the previous month and down 45 basis points from August 2024.
Meanwhile, the weighted average interest rate on new variable rate mortgage agreements was 4.09% in August, unchanged from July and 36 basis points lower in annual terms.
The Central Bank said the total volume of pure new mortgage agreements was €966m in August, 14% higher than the same time last year and 17% lower than the level seen in July.
Commenting on today's figures, Ross Lynch, Senior Mortgage Advisor at NFP Ireland, said that while the average interest rate on new mortgages in Ireland has fallen slightly, it remains broadly unchanged, continuing the plateau seen over the last few months.
"This could be a concern for many homeowners and prospective buyers who might have been hoping for deeper reductions in lending rates from the banks," Mr Lynch said.
"Looking ahead, there are a number of factors that could influence mortgage rates. Tariffs on EU imports to the US, for example, could push up inflation across the euro zone. If higher costs are passed onto consumers, the ECB may have to reconsider its stance on interest rates, which could put additional pressure on mortgage holders further down the line," he cautioned.
He said that in this environment, competition among lenders is more important than ever.
"Borrowers on variable rates, or those nearing the end of a fixed term, could save hundreds or even thousands of euro each year by reviewing their current mortgage deal. Switching lender is not always necessary; lower rates may be available through your existing provider if your loan-to-value has improved since you first took out your mortgage," he added.
