Average new mortgage rate in Ireland rises above 4% with further increase likely

The last time the average interest rate stood at a higher level was in April 2015

Rachel McGovern, director of financial services at Brokers Ireland, said the continued rise in interest rates had dampened demand among potential homeowners.

The average interest rate on new mortgage agreements in Ireland has risen above 4 per cent and is set to rise higher as the squeeze on borrowers continues.

Central Bank data released on Wednesday showed the weighted average interest rate on new mortgage contracts at the end of June was 4.04 per cent, an increase of 20 basis points on the previous month and up 136 basis points compared to the same time last year.