Mortgage Interest Rates Fell in March

The average interest rate for mortgage contracts stood at 0.841% in March.

According to data released by the National Statistics Institute on Monday, the average interest rate fell to 0.841%, compared to 0.853% in the previous month, while the capital owed and monthly instalments reached 55,671 euros and 228 euros, respectively.

For mortgages signed in the last three months, the average interest rate fell from 0.716% in February to 0.705% in March. In March, the average principal debt rose 224 euros to 55,671 euros, and the average instalment rose by two euros to 228 euros.

The implicit interest rate on mortgage loans fell to 0.841%, lower than in the previous month. The interest rate was 0.705% (0.716% during the last three months for contracts signed in the previous three months), the INE stated.

The average rate on loans for financing Home Purchases fell to 0.858% (-1.4 basis points m-o-m). For contracts signed in the last three months, the interest rate was 0.696%. Taking all the contracts together, the average instalment rose by two euros, to 228 euros. Of this, 40 euros (18%) correspond to interest payments and 188 euros (82%) in principal. For contracts signed in the last three months, the average instalment rose by 10 euros, to 298 euros.

The analysis also adds that the average principal debt for all contracts rose by 224 euros in March compared with the previous month, reaching 55,671 euros. For contracts signed in the last three months, the average principal debt was 113,826 euros, 857 euros less than in February.