The average interest rate on a new mortgage in Ireland fell to 4.17 percent, a decrease of 0.07 percentage points from April. This follows a similar reduction in April.

This brings mortgage rates in Ireland to their lowest level in nine months.

Despite the decline, Irish homebuyers still face the sixth-highest rates in the euro zone.

The eurozone average remained steady at 3.80 percent, with significant variation across the bloc, ranging from 1.97 percent in Malta to 5.97 percent in Latvia.

The European Central Bank (ECB) cut interest rates in early June and indicated that more easing is likely this year.

Daragh Cassidy from the price comparison site bonkers.ie stated that any further cuts by the ECB should continue to lower mortgage rates.

“However, regardless of the pace or extent of rate reductions, the tens of thousands of mortgage holders on fixed rates ending in the next few months need to prepare for potentially higher repayments.

“Many mortgage holders who took out a fixed rate over the past three or four years might currently enjoy rates as low as 2% or 3%. But they will generally face higher rollover rates of around 4% to 4.50% when they re-fix in the coming months.”