The average annual interest rate built into home loan contracts was 3.612% in 2023, compared to 1.084% in the previous year, with the average installment increasing by 94 euros (35.3%) to 362 euros, INE reported this Friday.
According to the National Institute of Statistics (INE), in the financing direction “housing purchase”, the most relevant among all housing loans, the average interest rate increased from 1.091% in 2022 to 3.589% in 2023.
The average annual capital outstanding for the general loan and for the housing finance stream increased from €60,142 and €67,633 in 2022, respectively, to €63,459 and €70,962 in 2023.
The average annual installment for a general home loan increased by €94 (35.3%) in 2023, to €362, while for the “home purchase” financing line the increase was €104 between 2022 and 2023, to €396 Euro.
In December 2023, the implicit mortgage interest rate rose again to 4.593%, up 6.9 basis points from November and remaining at its highest level since March 2009.
“It should be noted that for the seventh month in a row, the growth of the hidden interest rate is becoming less intense,” INE reports.
For new contracts signed in the last three months, the interest rate fell for the second time in a row in the last 20 months, rising from 4.366% in November to 4.342% in December.
In the “housing purchase” financing line, the implicit interest rate on general contracts increased to 4.564% (+6.7 basis points compared to November). In contracts signed over the past three months, the interest rate recorded its second consecutive decline, down 2.7 basis points from the previous month to 4.326%.
In the last month of last year, taking into account all contracts, the average monthly payment was set at 400 euros, the maximum since the beginning of the series (January 2009), four euros more than in November and 101 euros more than in December. 2022, which means a monthly growth of 1.0% (same as the previous month).
However, INE noted that for the third month in a row there was a decrease in the rate of change in the average year-on-year benefit (37.5%) compared to what was observed in the previous month.
Of this amount, 244 euros (61%) corresponded to interest payments and 156 euros (39%) to amortized capital. In December 2022, the interest component was only 33% of the average cost of the contribution (299 euros).
In contracts concluded in the last three months, the average installment value fell by four euros compared to November, to 651 euros in December, corresponding to an increase of 21.5% compared to the same month the previous year.
In December, the average outstanding capital across all home loans increased by €159 to €64,597.
For contracts signed in the last three months, the average amount outstanding was 125,928 euros, which is 187 euros less than in November.
Author: Lusa
Source: CM Jornal
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