The average mortgage rate in Ireland rose slightly in January, reaching 4.27 per cent.
The latest figures from the Central Bank of Ireland show January's figure was up marginally on December, when the average interest rate sat at 4.19 per cent.
January's figure compared to the average rate of 2.93 per cent noted in the same month of 2023.
Among Euro zone countries, Ireland has the seventh-highest average interest rate, with the 20 countries which use the Euro noting an average interest rate of 3.96 per cent.
Following a series of rate hikes to tackle inflation, the European Central Bank (ECB) decided in its latest meeting last week to leave interest rates untouched.
It is expected a rate decrease may be on the cards over the coming months.
Responding to the Central Bank's figures, Daragh Cassidy from Bonkers.ie said Irish mortgage interest rates have remained "broadly steady" in recent months, "and despite the month-on-month jump they remain relatively close to the Eurozone average".
Predicting the ECB may begin cutting rates in June, he added: "We could see three or four 0.25 percentage point cuts by the end of the year."
While tracker mortgage customers will benefit from any rate reduction "almost immediately", Mr Cassidy said the main lenders may be slower to pass on the cuts to other customers.
"Despite the predicted fall in ECB rates over the coming year, those on fixed rates that are due to come to an end over the next few months still need to be preparing for potentially higher repayments," he warned.
"Many mortgage holders who took out a fixed rate over the past three or four years may be enjoying rates as low as 2 or 3 per cent at present.
"But they’ll generally be faced with new rates of between 4 and 5 per cent, if not higher, when they look to refix over the coming months, even if the ECB starts to cut rates soon," Mr Cassidy added.
