“The implicit interest rate in all real estate credit contracts fell to 3.978% in January 2025, representing a drop of 11.3 basis points (b.p.) compared to December (4.091%)”, revealed the INE in the statistical note released this Wednesday (February 19). The last time this rate fell below the 4% level was in July 2023, about a year and a half ago. Since the peak recorded in January 2024 (4.657%), interest rates have fallen by 67.9 bps.

With regard to financing for the purchase of housing – the “most relevant”, according to the INE – the interest rate for all home loans fell to 3.945% (-11.2 bps compared to December), also falling below 4%.

As a result, the mortgage payment was 401 euros (on average), representing a drop of 2 euros compared to the previous month and 3 euros compared to January 2024.