Mortgage interest rates fell again in May, reinforcing the trend of easing costs for households with home loans.
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Author: Redaction
Mortgage interest rates resume downward trend
Mortgage interest rates eased again in May, confirming a return to the downward path after a slight interruption in March. According to data from the National Statistics Institute (INE), the implicit interest rate across all mortgage contracts stood at 3.065%, down 1.2 basis points from April.
In mortgage contracts signed over the last three months, interest rates also declined, falling from 2.833% to 2.820%. This development reinforces a stabilisation trend after a period of adjustments in financing costs.
Mortgage lending continues easing trend
Despite the increase recorded in March, mortgage interest rates resumed their downward movement in April and May, extending a trend that has been in place since the start of 2024. This behaviour indicates that housing finance costs continue to ease, albeit gradually.
In the same period, the average mortgage payment stood at €405, €1 higher than the previous month and €10 more than in May 2025. For more recent contracts, the average payment fell by €10 to €692, although it remains above the level recorded in the same period last year.
Charges and outstanding mortgage debt
The structure of the average mortgage payment shows that interest accounted for 48.9% of the total in May, reflecting the continued weight of financing costs in household budgets.
The average outstanding capital across all mortgage contracts rose to €78,257, up €643 from the previous month. In contracts signed over the last three months, the average outstanding amount stood at €175,805, a decrease of €1,252 compared with April.
Recent evolution of mortgage credit in Portugal
The evolution of mortgage credit in Portugal shows a stabilisation trend, with lower interest rates and moderate changes in monthly payments. Despite occasional fluctuations, the mortgage market continues to reflect a more predictable environment compared with previous years, although costs remain significant for households.
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