By the end of 2023, the average cost of mortgage payments should increase by 92 euros. According to the Financial Stability Report (REF) published this Wednesday. The Bank of Portugal says the 3-, 6- and 12-month Euribor rates should be above 3% by the end of 2023. Of the 1.4 million mortgages, 18.1% will increase by more than 150 euros. However, for 41% of the loans, the institution, led by Mario Centeno, says that between June 2022 and December 2023, the contribution increase should be less than 50 euros.
We are talking about 1.2 million families who will have to support the increase in interest rates, which by the end of 2023 will affect household income by 4.8 percentage points. Although more than half of the 1.4 million loans still have an effort rate equal to or less than 20% of household income, according to REF, there are 10% of loans that will require an effort rate of more than 41.2% by the end of next year.
It is in families with higher incomes (over 6,000 euros per couple) that the increase in housing interest rates will be most reflected in terms of higher labor costs. In families with lower incomes (from 700 to 1200 euros), the impact of increasing the number of essential goods is more significant.
Author: Miguel Alexander Ganan([email protected])
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.