The implicit interest rate on housing has decreased for the first time since March 2022 to 4.641% in February, according to data released by the National Statistics Institute (INE).

"The interest rate implicit in all housing credit contracts decreased for the first time since March 2022, to 4.641% in February 2024, translating a decrease of 1.6 basis points (p.b.) compared to January 2024 (4.657 %)".

In contracts signed in the last three months, the interest rate fell for the fourth consecutive month, falling from 4.315% in January to 4.197% in February.

The average instalment registered the first reduction since February 2021, standing at 403 euros, 1 euro less than in January and 81 euros more than in February 2023, which translates into a monthly decrease of 0.2% (+1, 0% in the previous month).

In the last month, the interest portion represented 62% of the average instalment, which compares with 41% in February 2023. In contracts concluded in the last 3 months, the average instalment value fell by 11 euros compared to the previous month, to 628 euros in February 2024, which corresponds to an increase of 10.4% compared to the same month of the previous year.