Banks lent € 1.220 million to buy a house in April, when interest rates resumed the downward trend recorded in recent months. The data was released on Monday, June 7, by the Bank of Portugal.
“In April 2021, the volume of new lending operations for residential construction, consumption and other purposes amounted to 1,220 million, 387 million and 174 million euros, respectively,” refer regulator.
After financial institutions provided 1,382 million euros in March, this amount decreased in April. Compared to the same month last year, the growth was almost 47%. In April 2020, during the period of restrictions imposed by the pandemic, the bank allocated 831 million for the purchase of housing. The damage to the house was not only a matter of merit. Consumption loans and other purposes also declined in April compared to March. In consumption, this amount increased from 390 million to 387 million euros, and for other purposes – from 227 million to 174 million euros.
Interest rates resume downward trend
The Bank of Portugal also points out that on new home lending operations, the average interest rate in April fell by two basis points to 0.82%, “renewing the downward trend observed in recent months.”
On consumer loans and other purposes, the average interest rates were 6.51% (6.45% in March) and 3.94% (2.99% in March), respectively.
(News updated with more information.)
