Rates in February fell to 4.641%
The implicit interest rate on mortgage contracts fell in February for the first time since March 2022 – dropping 1.6 percentage points (p.p.) to 4.641%, Statistics Portugal (INE) announced today
For contracts signed in the last three months, the interest rate fell for the fourth month running, from 4.315% in January to 4.197% in February (-11.8 basis points).
The implicit interest rate for purchasing a home – the most relevant destination for mortgage loans as a whole – fell for the first time since March 2022, to 4.606% (-1.7 basis points compared to January).
For contracts signed in the last three months, the interest rate for this type of financing fell for the fourth time in a row, dropping 11.5 basis points from the previous month to 4.182%.
Considering all contracts, the average monthly instalment fell for the first time since February 2021, standing at €403, one euro less than in January, but €81 more than in February 2023, which translates into a monthly decrease of 0.2% (+1.0% in the previous month).
Of the instalment amount, €248 (62%) corresponds to interest payments and €155 (38%) to the principal capital. In February 2023, the interest component represented 41% of the average instalment (€322).
In contracts signed in the last three months, the average instalment fell by €11 compared to the previous month, to €628 in February 2024, 10.4% higher than in the same month in 2023.
In February, the average outstanding principal for all mortgage loans rose by €368 compared to the previous month, to €65,158.
For contracts signed in the last three months, the average amount owed was €124,216, €994 less than in January.
LUSA
