An Ennis Economist is predicting that further interest rate increases are inevitable.
The European Central Bank is set to increase interest rates by half a per cent to a record 3 point 5 percent.
The European Central Bank is expected to increase interest rates again today, in a further hit to homeowners on tracker mortgages.
It would be the sixth increase in 12 months, which could add over 900 euro annually to a typical 300 thousand euro mortgage.
However, there’s market speculation the increase may be smaller than expected, due to recent financial turmoil in the US.
Assistant Professor of Social Policy at UCD, Ennis native, Micheál Collins says expects an an announcement on an immediate increase, as well as a plan for it to continue onwards.
The rates increase comes as new CSO figures show the average price paid for a home in Clare increased by 17% last year, compared to the same period in 2021.
Diarmuid Mc Mahon of Sherry Fitzgerald McMahon Auctioneers in Ennis says while first time buyers will be impacted the most by higher rates, he believes the cost of a home at least will begin to level out.
You can listen to the full interview below.
