Interest rates on home loans reached their highest level since 2014 in January

Banks lent 1,385 million euros for home loans in January, 11 million euros less than in December, but with an interest rate of 3.32%, the highest since March 2014, according to the BdP.

The average interest rate on new home loans rose to 3.32% in the month under review, from 3.24% in December and 0.81% year-on-year, marking the highest value since March 2014 (when it was 3.39%) amounted.

According to the banking regulator and regulator, in January, 69% of the amount of new loans for permanent homeowners were at variable rates, while 7% were at fixed rates and 24% at mixed rates.

“While the preference for variable rate home loans remains, the weight of new mixed-interest loans has increased to 24% of the amount of new loans taken out in January”emphasizes the BdP.

Similarly, 32% of the amount of new home loans represented renegotiations, “maintaining the increase of the previous months”.

Also with regard to new loans granted by banks in January, 401 million euros in consumer credit was provided in that month, five million euros less than in December. The average interest rate was 8.48% (against 7.97% in December).

Loans for other purposes amounted to 134 million euros in January, 86 million euros more than in December.

New loans to businesses issued by banks in January fell to EUR 1,288 million from EUR 3,319 million in the previous month.

The average interest rate on loans to companies rose again to 4.70% (4.44% in December). The increase occurred both for loans up to one million euros (from 4.45% to 4.95%) and remained at 4.42% for loans above one million euros.

In terms of deposits, new time deposits from individuals amounted to EUR 5,727 million in January, EUR 571 million more than in the previous month. The average interest rate on new retail time deposits rose to 0.56% (0.35% in December), after being verified as “the biggest increase in 11 years”.

New term deposits from companies amounted to 4,883 million euros in January, 1,065 million euros less than in December. The average interest rate was 1.05% (0.97% in December).