In December 2021, a family in Portugal that took out a home loan paid an average interest rate of 0.83%. Less than a year later, in October 2022, that figure rose to 2.86%. It was the most expressive growth among all eurozone countries. An increase in interest with dire consequences for monthly bank deposits. For every €150,000 of a 30-year loan with a spread of 1% and indexation to a six-month Euribor, the increase in the installment over one year reaches €212. That is 48% more. And interest and installments should still rise before the beginning of next summer.
After several years of solid holding below zero and hitting a historic low at the end of last year, Euribor interest rates began to rise sharply in January. For example, the six-month average rate rose from -0.5% in December 2021 to 2.3% in November this year. The “fault” was the tightening of the monetary policy of the European Central Bank (ECB) to curb inflation in the eurozone, which intensified last summer and which will learn a new chapter next week (BC Lagarde prepares the most important decisions of the year).
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