The average interest rate on loans for new housing increased in August to 2.01%, compared to 1.88% in July, exceeding 2% for the first time since May 2016, the Bank of Portugal (BdP).
According to data advanced by the central bank, “in August, the average interest rate for the Values of mortgage loans stood at 1.32%, still close to the euro area average (1.67% in August)”, and “since April 2009, the differential between the average interest rates in Portugal and in the eurozone was not so low”.
As he explains, “contrary to what happens in the euro zone, in Portugal the vast majority of housing loans have an interest rate indexed to the six-month or 12-month Euribor, which means that the interest rates of the loan contracts are reviewed every six or 12 months, respectively.”
“Thus, the variations of the Euribor are transmitted more quickly to the Values of home loans in Portugal than for the euro zone average”, he says.
In new home loan operations granted in August, 69% of the amount corresponded to contracts with an initial term for fixing the interest rate of less than one year and only 7% with a term of more than 10 years.. The euro area average is 18% and 57%, respectively.
As for new consumer loans, the average interest rate rose to 7.93% (7.88% in July).
According to data released this Tuesday by the BoP, banks granted a total of 1,855 million euros in new loans to individuals in August, 111 million euros less than in July.
Of this total amount, 1,205 million euros correspond to mortgage loans, 478 million euros to consumer credit and 171 million euros to credit for other purposes. The values registered in July had been, respectively, 1,348, 454 and 163 million euros.
Source: Observadora
