Irish Examiner Mon.10th May 2010
As the European Central Bank (ECB) shows no sign of hiking interest rates, first-time buyers are being told now could be a good time to buy despite the possibility that property prices have not yet bottomed out.
The ECB left interest rates on hold yesterday at their record low of 1%, which came as a welcome relief to those on tracker mortgages.
Director with the Professional Insurance Brokers’ Association (PIBA), Rachel Doyle, said first-time buyers who want to get a foothold in the property market might be well advised to move while some long-term fixed rates are still reasonable.
“Even if property prices may not have reached the bottom, delaying in buying could mean that interest rate increases could work out more expensive than the benefit derived from a further drop in property prices”, she said.
Like many analysts, Ernst & Young expects interst rates to remain at 1% until early next year.