Mortgages in the eurozone are more expensive than ever since 2015, according to the ECB

MADRID, 4 Oct. (EUROPA PRESS) -

The interest applied to new loans to individuals for the purchase of housing in the eurozone, according to the composite indicator of the European Central Bank (ECB), reached 2.26% in August, which represents a monthly increase of 11 basic points compared to 2.15% in July and the highest cost since November 2015.

The composite indicator, which combines the different interest rates of all loans to households for house purchase, increased in August driven by the effect of the interest rate, according to the institution.

In this way, the interest of 2.26% corresponding to the month of August represents an increase of 96 basis points compared to the historical minimum of 1.30% observed in September 2021, although it remains far from the maximum of 5.55% registered in September 2008.

Among the different loans, the interest rate on loans for house purchase with a variable rate and with an initial rate fixation term of up to one year increased by 24 basis points to 2.08%.

In turn, the rate on housing loans with an initial rate fixation period of more than one and up to five years increased by 18 basis points to 2.44%, while with an initial rate fixation period of over five and up to ten years increased 10 basis points, to 2.63%.

For housing loans with an initial rate fixation period of more than ten years, the rate rose by 8 basis points to 2.07%.

For its part, the interest rate on new consumer loans to households increased by 22 basis points, to 6.01%, driven mainly by the interest rate effect.

As for new deposits from households, the interest rate on term deposits of up to one year increased by 9 basis points to 0.35%. The interest rate on deposits available three months in advance increased by 24 basis points to 0.70%, while the interest rate on household sight deposits remained constant at 0.01%.

At the end of last July, the Governing Council of the ECB decided to raise interest rates by 50 basis points, its first increase since 2011, after which in September it undertook an increase of 75 basis points.

Consequently, the interest rate on the main refinancing operations and the interest rates on the ECB's marginal lending facility and deposit facility have stood since mid-September at 1.25%, 1.50% and 0.75%, respectively.