The interest rate on housing loans fell 7.9 points to 3.228% between August and September, a month in which, for the first time since May 2023, interest represented less than half the value of the installment.
According to data released today by the National Statistics Institute (INE), the interest rate on housing loans fell to 3.228% in September, 7.9 basis points less than in August and accumulating a reduction of 142.9 basis points from the maximum of 4.657% in January 2024.
In contracts signed in the last three months, the interest rate decreased by 1.0 basis point, to 2.873%, corresponding to an accumulated decrease of 150.7 basis points since the maximum reached in October 2023.
For the financing destination “housing acquisition”, the most relevant in all housing loans, the implicit interest rate for all contracts fell to 3.226% (-7.5 basis points compared to August).
In contracts signed in the last three months, the interest rate fell 1.0 basis point compared to the previous month, to 2.872%.
Considering all contracts, the average monthly installment amounted to 393 euros in September, one euro lower than the previous month and 11 euros less (-2.7%) than in September 2024.
Of the installment value, 195 euros (49.6%) corresponded to interest payments and 198 euros (50.4%) to amortized capital.
INE highlights that “it is the first time since May 2023 that the interest component has a weight of less than 50%” in the average monthly installment.
In contracts signed in the last three months, the average installment value increased by 15 euros, standing at 666 euros, reflecting an increase of 7.1% compared to the same month last year.
In September, the average capital outstanding for all housing loans increased by 634 euros compared to the previous month, reaching 73,496 euros.
For contracts signed in the last three months, the average amount owed was 163,761 euros, 2,440 euros more than in August.