Portugal is the 2nd EU country where interest rates rose the most — idealista/news
the universe of housing goods to buy house changed throughout 2022, especially after the European Central Bank (ECB) started to raise fees for directors. With the higher price of money, interest rates on home loans are trying to increase in almost all European Union (EU) member states, albeit at different speeds. Portugal was even the second country in the EU that recorded the highest rise in interest rates on new loans to buy a house between November 2021 and the same month of 2022, settling at 3.08%.
At the end of 2021, European countries still had interest rate lowest ever, at a time when Euribor rates were negative. But in early 2022, everything changed: the ECB began to announce hikes in directors’ rates for the first time in 11 years, and benchmark rates investigated the protest. And so it was: between July and December last year the european regulator climbed the principal interests at 250 basis points. And it will only stop when the autonomous in the Euro Zone towards 2%, as Christine Lagarde, president of the ECB, recently assured.
These decisions of monetary policy suffered from influencing the home loan market Europe by raising, above all, interest rates. You ECB data specify precisely that average interest rates in the new grants to buy house increased in 18 of the 19 countries with available data. And it was in Germany where the leap was greatest: it went from 1.32% between November 2021 to 3.6% in November 2022 – that is, it increased by 2.28 percentage points (pp).
The second country where interest on new housing income the most climbed was precisely Portugal. In November 2021, average rates were still below 1% (specifically at 0.83%). A year later, the average interest settled at 3.08%, a value 2.25 pp higher, show the most recent data from the European regulator.
Among the biggest rises in interest on new home loans between these two moments there is also:
- Lithuania (from 2.05% to 4.09%);
- Slovakia (from 0.93% to 2.96%);
- Finland (from 0.78% to 2.76%).
On the other hand, the smallest increases in interest rates in new house loans have been registered in Malta and Greece. The only country that recorded a decline of average interest does not mortgage loans was Ireland: it stood at 2.68% in November 2022, minus 0.05 pp compared to the same month of the previous year.
There are several factors that may explain these differences in increases in interest rates on housing loans. On the one hand, not all countries showed a high exposure to variable interest rates (such as Portugal, for example). On the other hand, not everyone has a owner culture rooted, i.e. preferable rent houses instead of buying (as happens in Germany). And it must be borne in mind that the spreads contractors are also independent of the robustness of the banking institutions in each country.
Which countries have the highest interest rates on housing loans? And lower?
It is the countries of Eastern Europe – where there is, above all, the culture of ownership – that presented as higher interest rates to buy home in November 2022. According to the latest ECB data, interest rates in Lithuania and Latvia for the total of new housing housing it was fixed at 4.09%, on average. And in Estonia the average interest stood at 3.96%.
Considering the list of 19 European Union countries with available data, Portugal is the 8th country that presents the juror fees associated with the mortgage loans higher – in November the average in our country was fixed at 3.08%. This figure is well above the Euro Zone average of 2.81% in November 2022 for all countries. new home loans.
At the bottom of the table is France, with an average interest rate in new peanuts to buy home of 1.91%. Close behind is Malta (2.18%), Ireland (2.68%) and Spain (2.7%).