Mortgage agreements down by 31% in June but rates remain high

The number of new mortgages agreed in June was down 31 per cent on the same month a year earlier to €490 million.

They were up by a similar percentage compared to May, however, when they hit a three-year low of €377 million.

New figures published by the Central Bank show €387 million was agreed in new fixed-rate mortgages during June, down 27 per cent year-on-year. New variable rate mortgages fell by 43 per cent to €103 million.

The average interest rate on new mortgages stood at 2.79 per cent in June, down 8 basis points compared to May. Mortgage holders in the Republic currently pay the fourth highest interest rates across the euro zone, with only households in Latvia, Greece and Estonia paying more for home loans.

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The euro zone average was 1.33 per cent in June.

The average interest rate on new fixed rate mortgages fell by 17 basis points to 3.20 per cent versus the previous month.

Renegotiated mortgages amounted to €238 million, up 17 per cent on May and with fixed rate loans accounting for 70 per cent of all renegotiations.

The Central Bank figures show new consumer lending agreements totalled €139 million in June, up 70 per cent on the month prior. Lending is lower versus the same month a year earlier, however.