The interest rate on all home loan agreements reached 4.270% in September, the highest since March 2009, a 14-year record, after an increase of 18.1 points compared to August (4.089%), according to information published this Friday by the National US Bank. Statistical Institute (INE).
However, across all contracts, the average cost of monthly payment paid to banks was 386 euros in September, which is seven euros more than in the previous month and 114 euros more than in the same period in 2022, an increase of 41. 9% more in just one year.
Of the average cost of the contribution, 226 euros (59%) correspond to interest payments, and 160 euros (41%) correspond to amortized capital. It should be noted that in September 2022 the interest component was only 21% of the monthly fee required by the bank (272 euros).
The constant increase in installments is the result of an increase in Euribor rates due to the policy of increasing interest rates adopted by the European Central Bank (ECB) in order to reduce inflation that affects eurozone countries.
The 12-month Euribor rate, currently the most commonly used rate in Portugal for variable-rate home loans, rose this Friday to 4.185%, still down from the 4.228% reached at the end of September.
The ECB’s governing council will meet next week on October 26, but this time it should not change the rates it set last month, according to financial analysts. At that time, interest rates for banks to refinance with the central bank rose to 4.5%.
Author: Joao Maltes
Source: CM Jornal
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