The Euribor rates saw a decrease today for three and 12-month terms while increasing at six months, with all three maintaining levels above 2%. Following today’s adjustments, the three-month rate, which fell to 2.031%, remains below the six-month (2.036%) and 12-month (2.093%) rates.
The six-month Euribor rate, which became the most utilized rate for variable-interest home loans in Portugal as of January 2024, increased today, being set at 2.036%, up by 0.001 points.
Data from the Bank of Portugal (BdP) for April show that the six-month Euribor accounted for 37.61% of the stock of variable-interest home loans for primary residences.
The same data indicate that the 12-month and three-month Euribor rates represented 32.46% and 25.60%, respectively.
Conversely, the 12-month Euribor rate decreased, set at 2.093%, down by 0.008 points from Friday.
The three-month Euribor, which was below 2% between May 30 and June 12, also decreased today, reaching 2.031%, down by 0.003 points.
In May, the Euribor monthly averages fell across all three terms, less sharply than in previous months and most significantly for the shortest term (three months).
The monthly average Euribor in May dropped by 0.162 points to 2.087% for three months, 0.086 points to 2.116% for six months, and 0.062 points to 2.081% for 12 months.
During the latest monetary policy meeting held on June 4 and 5 in Frankfurt, the European Central Bank (ECB) lowered interest rates by 0.25 basis points, reducing the main policy rate to 2%.
This decrease marked the eighth reduction since the ECB began this series of cuts in June 2024, and analysts predict it may be the last one this year.
The next ECB monetary policy meeting is scheduled for July 23 and 24 in Frankfurt.
The Euribor rates are determined by the average rates at which a panel of 19 eurozone banks is willing to lend to each other on the interbank market.
Mortgage Credit? Interest Rate Fell to 3.570% in May
The implicit interest rate on the total mortgage contracts fell to 3.570% in May, reflecting a decrease of 9.3 basis points compared to April (3.663%), the National Institute of Statistics (INE) disclosed this Wednesday.
For contracts signed in the last three months, the interest rate dropped from 3.060% in April to 3.057% in May.
The average installment was set at 395 euros, representing a decrease of 1 euro compared to the previous month and a decrease of 9 euros compared to May 2024.
Last month, the interest portion accounted for 53% of the average installment. For contracts signed in the last three months, the average installment amount rose by 20 euros to 641 euros, which corresponds to a 6.3% year-on-year increase.
The average capital outstanding for all mortgage credits increased by 629 euros, reaching 71,042 euros.
