Good News For Homeowners, And Maybe Even Economy

Good news for homeowners today, as €82 is expected to fall from average mortgage payments as interest rates take another fall.

The key policy rate has been cut to 2%, and reduced monthly repayments on a €300,000 mortgage by €82.

In some other good news, the Taoiseach Brian Cowen has given a surprisingly upbeat forecast, predicting the slump in house prices could come to a halt this year.

A report by the Irish Auctioneers and Valuers Institute yesterday however found that new house prices in Dublin fell by 15% in 2008, totalling a drop of 25% since their peak in 2006.


But after so many gloomy reports recently, Mr Cowen's bright outlook was cheered other economists including the author of the Daft.ie property report, Ronan Lyons, who said: "The Taoiseach is right in that things could turn around with low interest rates and all the new stimulus packages. Then there may well be a bottoming out of the market in some areas. It's not groundless."

In a report released by Mr Lyons yesterday, he said: " with good management, we can look ahead and spot elements of a brighter future - just look at the cost of petrol, mortgages, food or clothing now compared to a year ago. Ultimately, with the resolve to put right what needs to be fixed, and with a far better starting point than we had in the mid-1980s, we have to be confident about our prospects for the future."

(DW/BMC)