The average mortgage rate was 3.53pc, down from 3.56pc in October, according to Central Bank figures.

This leaves Irish mortgage rates at their lowest level since February 2023. While this is good news for borrowers, a shortage of houses to buy means they are competing hard for what is available in the market.

Across the Eurozone, the average rate was 3.33pc, which means Irish rates are the sixth highest in the bloc. Though the gap is narrowing, rates continued to vary widely across the Eurozone, going from as low as 1.96pc in Malta to as high as 3.78pc in Latvia.

Massive variations in the mortgage rates charged by various lenders exist across different banks and non-bank lenders in this market, said Daragh Cassidy of mortgage brokers and price comparison site Bonkers.ie.

An analysis by Bonkers.ie shows that variable rates range from 3.45pc to 4.70pc for the average first-time buyer borrowing €300,000 with a 10pc deposit. Rates for a three-year fixed mortgage range from 3.20pc to 4.85pc.

Mr Cassidy said: “Prospective first-time buyers and switchers are being reminded of the importance of shopping around when applying for a mortgage.”

He said the November Central Bank figures reflect cuts by PTSB and AIB around that time.

Recent reductions by Avant Money, and a rise in rates by non-bank lender ICS Mortgages, will not be reflected until figures for this month are available.

Mr Cassidy said: “Although Irish rates may still be the sixth highest in the Eurozone, the gap is now relatively modest at just 0.20 percentage points.

“It’s also worth remembering that banks here don’t charge fees or commissions for issuing a mortgage, unlike in many other countries where arrangement fees of €1,000 or more are common. So this makes Irish rates a tad more competitive than they may first appear.”

He said the European Central Bank appears to be finished cutting rates, after reducing them eight times in the last two years.

Rates could remain on hold for all of 2026.

“So it’s unlikely mortgage rates will change much over the coming months.”

However, Revolut is expected to enter the Irish mortgage market later this year. He said that depending on how competitive its offering is, that could push rates down a bit.

The Bonkers.ie executive said there are 10 lenders in the Irish mortgage market at present when credit unions are included and there’s a wide variation in rates across them all.