Irish mortgage rates fell again in December, according to the Central Bank.
The average interest rate on a new mortgage in the Republic is now at 4.19 per cent, down for the third month in a row and 0.06 percentage points lower compared to November.
This meant Ireland had the 10th lowest rates in the euro zone at the end of last year.
However, rates varied hugely across the currency bloc – from as low as 2.44 per cent in Malta to as high as 6.06 per cent in Latvia.
The euro zone average also fell to 4.06 per cent, its first month-on-month drop in over two years.
Mortgage rates have begun to ease in recent weeks in some countries as the cost of raising funds on capital markets eases in advance of an expected drop in European Central Bank (ECB) rates later in the year.
Daragh Cassidy, from price comparison site bonkers.ie, said Irish mortgage rates were continuing on a "surprising" downward trend.
"PTSB cut its four-year fixed rate near the start of December, which would partly explain the drop," he said.
"First-time buyers might also be choosing shorter-term fixed rates, which tend to be lower than longer-term rates. This would make sense as it looks like the ECB will start to cut rates over the coming months so mortgage holders may not want to lock themselves into a particular rate for too long."
Mr Cassidy predicted that the ECB will start to cut rates from around June.
"Tracker customers will benefit almost immediately from any cuts. For everyone else, it’s less clear cut. The main lenders have passed on less than half of the ECB rate hikes to date. So it’s unlikely AIB, Bank of Ireland and PTSB will respond to any rate cuts immediately."
