Households settle home mortgage record value

The early repayment of mortgage loans has in recent years behaved in line with changes in the business cycle and household disposable income.

The increased financial capacity to repay home loans also accompanies the country's economic recovery.

 

According to a report by Banco de Portugal, it risked an explanation for the change in behavior of the Portuguese. "Mortgage repayment may be associated with the buoyancy of the real estate market, as home exchange often involves the full repayment of existing mortgage loans and another contract to finance new housing."

 

The justification for this early repayment may in fact lie in the dynamism of the Real Estate Market as Banco de Portugal stated in that year's report.

 

Interest rates are expected to remain low in the near future. That is at least the indication that comes from the successive speeches of the current president of the European Central Bank that this week did not change the reference rate values ​​for the euro zone. In a statement issued last Thursday, the ECB indicated that rates are expected to remain until the end of the first half of next year at current or "lower" levels, opening the door to future cuts.

 

Source: Jornal de Notícias. 29/07/2019