In October, the interest rate in these contracts fell again to 4.277%, 8.5 basis points (bps) less compared to September. This trend is felt even more in new real estate loans, where average interest rates are already 3.533%, according to a report by idealista.

The National Statistics Institute (INE) revealed that “the interest rate implicit in all real estate credit contracts decreased to 4.277% in October, translating to a drop of 8.5 bps in relation to September (4.362%)”. This downward trend has already been felt since the beginning of the year, accumulating a reduction of 38 bps since the maximum reached in January 2024 (4.657%).

With regard to credits intended for the purchase of a house (the most “relevant” financing destination, according to INE), interest rates fell to 4.239% in October, that is, 8.3 bps less compared to September.

The house payment (average) remains fixed at €404 in October, the same value recorded in the previous month and 3.1% higher than that observed a year ago.

The fact that the average payment is not falling as interest rates fall may be related to the increase in the average capital outstanding, which for all mortgage loans increased by 406 euros in October compared to the previous month, standing at 67,692 euros.

In the case of mortgage loans concluded in the last three months, a greater reduction in interest rates has been felt, mainly driven by the greater contracting of cheaper mixed rates and the fact that Euribor rates have been falling for several months.