INE data show the implicit interest rate on all housing loans rose to 3.194% in September, up 3.2 basis points from 3.162% in August and the highest since September 2025 (3.228%).
The average monthly payment reached 423 euros in September, five euros more than in August and 30 euros above September 2025.
Interest made up 50.4% of the average payment in September, with 213 euros going to interest and 210 euros to capital.
On 21 October the three-month Euribor reached 2.670%, the six-month 3.030% and the twelve-month 3.263%, while the ECB's next meeting is on 28 and 29 October.
The National Statistics Institute (INE) reported on Wednesday, 21 October, that the implicit interest rate across all housing loan contracts rose to 3.194% in September, 3.2 basis points above August's 3.162%. It is the fourth consecutive monthly increase and the highest level since September 2025, when the rate stood at 3.228%. The increase follows the rise in Euribor rates, which feeds into loans that track them.
“The implicit interest rate across all housing credit contracts rose to 3.194% in September, a 3.2 basis point increase on the previous month.”
Data from the article text
Loans signed in the last three months carried an average rate of 2.959% in September, up from 2.910% in August, according to INE. The average monthly payment across the whole portfolio was 423 euros, five euros more than in August and 30 euros above September 2025. For contracts signed in the last three months, the average payment rose 13 euros to 757 euros, a 13.7% increase on September 2025. Mixed-rate loans, which banks are actively promoting, explain much of the gap between recent contracts and the total portfolio.
Of the 423-euro average payment, 213 euros went to interest and 210 euros to repaying capital. The split flipped in favour of interest for the first time since August 2025. INE said the interest share reached 50.4% of the average payment in the last month.
“In the last month, the interest portion accounted for 50.4% of the average payment.”
The average capital still owed across all housing loans rose 655 euros to 80,843 euros. For contracts signed in the last three months, the outstanding capital reached 187,246 euros, 1,434 euros more than in August. The portfolio-wide data show Euribor increases reaching a considerable share of older loans.
Data from the article text
On Wednesday, 21 October, Euribor rose for a third straight session at three, six and 12 months. The three-month rate reached 2.670%, the six-month rate 3.030% and the twelve-month rate 3.263%. Banco de Portugal data for August show the six-month rate underpinned 40.3% of variable-rate stock for owner-occupied permanent residence loans, against 31.03% for the twelve-month rate and 24.27% for the three-month rate. Euribor is the average of the rates at which a panel of 21 eurozone banks lend to one another.
Data from the article text
The European Central Bank raised its key rates by 25 basis points on 10 September, as markets had expected, after holding them in July. Its June move was the first increase since September 2023, following a seventh consecutive hold in April. The bank had made eight cuts after starting its easing cycle in June 2024. The next monetary policy meeting is scheduled for 28 and 29 October in Frankfurt.
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Interest on Portuguese housing loans rose again in September, and the average monthly payment reached 423 euros, with interest now taking over half of it.
AI text based on reports by Observador, Correio da Manha, PÚBLICO and other publishers. Published .