In November, new loan operations to individuals totalled 2,982 million euros, recording a decrease of 106 million compared to the previous month. Despite this reduction, real estate credit continues to stand out, with the amount of new contracts reaching 1,667 million euros.

This value represents the second highest in the historical series, which begins in December 2014, demonstrating the resilience of the Portuguese real estate market. The regulator highlights that “credit granted to borrowers under 35 years of age represented 48% of the amount of new contracts for permanent home ownership granted in November”.

These numbers were also accompanied by a further drop in the average interest rate on new real estate credit operations, which went from 3.4% in October to 3.29% in November, marking the lowest value since January 2023. Furthermore, “the average monthly instalment on housing loans decreased by 3 euros, to 417 euros in November, the lowest value since November 2023”, highlights the Bank of Portugal.

In the European context, Portugal continues to present competitive conditions. “Portugal had the seventh lowest average interest rate, below the euro area average”, which was 3.44%, highlights the Bank of Portugal in a statement.

Data from Banco de Portugal also highlights a 4.8% reduction in the volume of credit renegotiations, which stood at 559 million euros in November, with particular focus on mortgage loan renegotiations, which decreased by 27 million euros.

Furthermore, the regulator also mentions a preference among households for mixed-rate loans. “In November, 76% of new mortgage loans were taken out at the mixed rate”, although this figure represents a slight decrease of 1 percentage point compared to October.