Tuesday, 9 December 2008

REA welcomes new ECB rate reduction

The most recent announcement by the ECB slashing their interest rates by seventy-five basis points has been warmly welcomed by Healy Hynes of Hynes Real Estate Alliance. The ECB move now makes their benchmark rate less than half of what is was in October when it stood at 5.25%
The European Central Bank 0.75% cut to its main lending rate brings the bank's rate down to 2.5%. This decrease comes on top of two previous cuts of half a percentage point each over the past two months.
The reduction is aimed at reducing mortgage repayments, making borrowing cheaper and putting more money in the pockets of consumers. A number of Irish banks have already promised to pass the reduction on to their customers.
Healy Hynes of Hynes Real Estate Alliance has welcomed the move saying it will help to bolster the property market. “It’s a buyers market out there and any move that makes housing more affordable to buyers has to be welcomed.”
The next step according to Mr. Hynes is for the banks to ensure that lending is made available to buyers who wish to take advantage of the massive improvement in housing affordability that has taken place in recent months.