Mortgage lending increases, interest rates higher
"In May 2021, the volumes of new loan operations for housing, consumption and other purposes totalled €1.314 billion, €425 million and €178 million, respectively," said the Bank of Portugal (BoP).
Banks lent €1.314 billion for home purchases in May, more than in April, and with the average interest rate reversing the trend and increasing, the Bank of Portugal said on Monday.
“In May 2021, the volumes of new loan operations for housing, consumption and other purposes totalled €1.314 billion, €425 million and €178 million, respectively,” said the Bank of Portugal (BoP) in a statistical information note released today.
In April, the volumes of new loans for housing, consumer and other purposes had totalled €1.22 billion, €387 million and €174 million, in that order.
The average interest rate for new loans to individuals for housing purposesincreased in May by one basis point, to 0.83%, when in the previous month it had retreated two basis points, to 0.82%.
The average interest rate on new deposits, up to one year, from non-financial companies was 0.03%, one basis point less than in April. On new deposits from individuals, the average interest rate remained at 0.05% for up to one year.
The average interest rate on new loans to non-financial companies fell 16 basis points in April, to 1.80%.
By segment, the interest rate on operations below one million euros fell 11 basis points, to 2.15%, and the rate on operations above one million euros fell 21 basis points, to 1.34%.
