Mortgage credit: Implicit interest rate decreases again in January.

Interest rate on home loans drops to 3.978%

The implicit interest rate on housing credit contracts recorded a decrease to 3.978% in January 2025, representing a decrease of 11.3 basis points (b.p.) compared to the previous month.  

In December, the rate stood at 4.091%, as read in the Notícias ao Minuto based on data from the National Institute of Statistics (INE).

For contracts signed in the last three months, the interest rate dropped from 3.349% in December to 3.113% in January.

The average monthly installment settled at 401 euros, decreasing by 2 euros compared to December and 3 euros compared to January 2024.

In the last month, the interest component represented 56% of the average installment value. In contracts signed in the most recent quarter, the average installment reduced by 32 euros, settling at 600 euros, which translates to a 6.1% decrease compared to the same period last year.

The average amount owed for all housing loans increased by 522 euros, totaling 68,992 euros.

Read more: New year, new home: Is it the right time to invest in a mortgage?

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