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Interest rates

Track ECB base rate decisions and average Irish mortgage rates across fixed and variable products — the key drivers of affordability, demand, and investment returns in the Irish property market.

ECB base rate – forecast

Source: ECB projections / market forward rates

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Indicative trend only. Live data from ECB projections / market forward rates being integrated.

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How is the ECB rate forecast used by property investors?

Forward-rate expectations — derived from money market instruments and ECB projections — allow investors to model future mortgage costs, refinancing risk, and the likely trajectory of variable rate mortgages. For buy-to-let investors on tracker mortgages, the rate forecast directly informs net yield projections.

Property developers and institutions use rate forecasts to assess construction finance costs and exit cap rates. A sustained lower-rate environment typically compresses yields as property prices rise faster than rents, while a higher-for-longer scenario can improve initial yields but suppress transaction volumes and capital values.

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