However, economists have warned that persistent inflation and wage growth could mean rates will rise again. Even if they do not go up, it will be late next year before interest rates start to come down, they said. Higher interest rates have wreaked havoc with existing mortgage holders and house hunters, according to Joey Sheahan, head of credit at online broker MyMortgages.ie. Each 0.25 percentage point rise in mortgage rates adds around €156 to the yearly repayments on each €100,000 borrowed over 25 years. Higher interest rates also restrict how much house-hunters can borrow.

Source: Irish Independent October 26, 2023 12:29 UTC