Portugal is leading the rate hike for home buying in the eurozone

In December 2021, a family in Portugal who took out a home loan paid, on average, an interest rate of 0.83%. Less than a year later, in October 2022, that number had risen to 2.86%. It was the most significant increase among all eurozone countries. Increased interest with a significant impact on the bank’s monthly installments. For every €150,000 of 30-year credit, with a spread of 1% and an index of six months Euribor, the increase in the premium in one year amounts to €212. That is 48% more. And interest and installments should continue until the beginning of next summer.

After years of settling firmly below zero, and having reached historic lows at the end of last year, Euribor interest rates began to rise sharply in January. For example, the six-month average monthly rate increased from -0.5% in December 2021 to 2.3% in November this year. The “blame” was the tightening of monetary policy by the European Central Bank (ECB) to curb inflation in the eurozone, which intensified last summer and which next week defines a new chapter (European Central Bank Lagarde is the most important decision of the year🇧🇷

This is an article from Expresso Weekly. click over here To continue reading.