According to data from the banking supervisor, the average interest rate on new mortgage loans fell from 2.97% in May to 2.91% in June, representing the 19th decline in the last 20 months (the exception was January 2025, when it rose 0.03 percentage points).

This is also the lowest average interest rate on new loans since October 2022 (2.76%).

The average interest rate on new mortgage loans fell for both new contracts and renegotiated contracts, with average rates falling by 0.04 percentage points and 0.13 percentage points, to 2.87% and 3.11%, respectively.

Across euro area countries, the average interest rate on new mortgage loans fell by 0.01 percentage points to 3.29%, with Portugal having the fifth lowest average interest rate, falling below the euro area average.

The average monthly instalment on outstanding mortgage loans fell by one euro in June compared to May, to 413 euros, reaching its lowest level since September 2023.

Data released by the BdP adds that the six-month Euribor was the most widely used rate for new mortgage loans in June, representing 50.6% of the total for new variable-rate loans.

The 12-month Euribor, which was the most widely used in the previous 22 months, accounted for 40.52% of new variable-rate loans, while the three-month Euribor accounted for 5.18%.

In terms of the total stock of home loans, the six-month Euribor accounted for 37.74%, the 12-month Euribor 32.28%, and the three-month Euribor 25.28%.