/

Abi: slightly increase in mortgages rate in August 1.88%, bad loans in sharp decline

Posted: 25 September 2018

In August, the average rate on the new home purchase transactions came to 1.88% (1.79% in July 2018, 5.72% at the end of 2007). On the new mortgages total, around two-thirds are fixed-rate mortgages.

This is what we can read in the monthly report by ABI, which underlines that the interest rates applied to the customers loans are at historical minimums.

The average rate on total loans is 2.59%, historical minimum (2.60% the previous month and 6.18% before the crisis, at the end of 2007).

The trend in net bad loans decreased to 40.1 billion euros in July 2018, placing itself at the lowest level since December 2010.