Mortgage interest rates at three year high

in Business · 30-08-2019 01:00:00 · 1 Comments
Mortgage interest rates at three year high

The interest rate implicit in housing credit contracts rose in July to the maximum seen over the past three years, reaching 1.087 percent.

According to the National Institute for Statistics Portugal (INE), the interest rate reached 1.089 percent in June 2016, falling to 1.066 percent in the following month and, since then, only in July this year did INE record a higher rate.


In the contracts signed over the last three months, the interest rate was 1.305 percent last July, up from 1.267 percent in the previous period.


For financing ‘house purchase’, the most relevant in the whole of housing loans, the implicit interest rate for total contracts rose to 1.109 percent, 0.6 basis points more than in June, and in contracts signed in the last three months the interest rate for that destination of financing increased by 3.4 basis points, to 1.281 percent.


Considering all contracts, the average value of the instalment due rose €1 to €248, of which €49 (20 percent) corresponded to interest payments and €199 (80 percent) to amortising the capital.


In July, the average outstanding capital for all contracts rose by €39 to €52.954.


For the contracts signed in the last three months, the average outstanding capital stood at €100,655, €905 more than in June.



Comments:

This is so dangerous, we have seen this before in 2008,over inflation on property is the first sign of improper valuation if property.

Lessons learnt, US financal bubble 2008.

by Rodwell van Wyk from Other on 09-09-2019 02:51:00
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