Mortgage rates in Ireland are set to fall below 3 per cent by the end of the year, bringing relief to homebuyers, Irish Independent reported.
However, savers have been warned of a downside to the declining rates, as returns on savings accounts are expected to drop significantly in the coming months.
The latest figures from the Central Bank of Ireland highlight a continued decrease in interest paid on fixed-rate savings products. In November, the average rate on household deposits was 2.6 per cent, a slight drop from the previous month.
Overnight deposit accounts, which include demand deposit and current accounts, have been particularly affected. These accounts, where most of the €160 billion in household savings is held, paid an average interest rate of just 0.14% in November.
At the same time, Irish mortgage rates are steadily declining. The average rate for a new mortgage was 3.97 per cent in November, according to Central Bank data. This marks the lowest level for mortgage rates in the past year and a half, reflecting an encouraging trend for prospective homebuyers.
The downward trajectory in mortgage rates has been consistent, with November’s rate representing a small but notable drop from 4.03% recorded the previous month.