Lisbon, Dec. 19, 2024 (Lusa) - The implicit interest rate on mortgage loans fell in November for the tenth month in a row to 4.186%, accumulating a reduction of 47.1 basis points since the maximum of 4.657% reached in January, INE announced on Thursday.

According to Statistics Portugal (INE), the implicit interest rate on mortgage loans fell 9.1 basis points compared to October, to 4.186%, below the 4.524% recorded in November 2023.

For contracts signed in the last three months, the interest rate went from 3.533% in October to 3.423% in November (-11.0 basis points), in which case the decrease since the maximum reached in October 2023 is 95.7 basis points.

For house purchases, the most relevant financing destination for mortgage loans as a whole, the implicit interest rate for all contracts fell by 9.0 basis points compared to October, to 4.149%.

For contracts signed in the last three months, this rate fell by 10.6 basis points compared to the previous month, to 3.405%.

In November, across all contracts, the average monthly instalment stood at €403, one euro less than in the previous month and seven euros (1.8%) more than in November 2023.

Of these €403, €234 (58%) corresponded to interest payments and €169 (42%) to amortised capital.

In contracts signed in the last three months, the average instalment fell by two euros in November compared to the previous month, to €632, and fell by 3.5% compared to the same month last year.

In November, the average outstanding capital for all contracts rose €437 compared to October, to €68,129.

For contracts signed in the last three months, the average amount owed was €139,868, €3,581 more than in October.

The implicit interest rate on mortgage loans reflects the ratio between the total interest due in the reference month and the capital outstanding at the start of that month (before amortisation).

PD/ADB // ADB.

Lusa