In 2022, Portugal overturned the sinking mortgage interest rate it had gone through during the coronavirus (COVID-19) pandemic. The country did not escape from the overall trend of falling mortgage interest rates observed in Europe during the COVID-19 crisis, which positioned national mortgage interest rates at **** percent in the fourth quarter of 2021. Interest rates as a weapon against inflation Even though interest rates are affected by economic growth, monetary policies, the bond market, the stability of lenders, and the overall conditions of the housing market, inflation currently leads the European Central Bank (ECB)’s decisions regarding them. As inflation had been low in Europe since the 2008 financial crisis, the ECB lowered interest rates in an attempt to promote economic growth. However, the economic difficulties brought up by the coronavirus pandemic and the Russian-Ukrainian war have fueled inflation. To counteract this rise, the ECB increased interest rates. Portugal’s abrupt rise in interest rates on new residential loans from **** percent in 2021 to **** percent in 2023 demonstrates the balanced and calculated act between the two financial indices. High interest rates and low mortgage lending Compared to other European nations, Portugal has a low gross residential mortgage lending. In the third and fourth quarters of 2022, mortgage lending decreased in the country due to rising interest rates and worsening economic conditions, but have increased dramatically until 2024. Despite being in a rising trajectory in terms of outstanding residential mortgage lending since the second quarter of 2021, 2023 registered decreasing figures caused by the same economic contingencies. 2024 shows a different trend, however.

View monthly updates and historical trends for Portugal Long Term Interest Rate. Source: European Central Bank. Track economic data with YCharts analytics.

The annual average interest rate on new residential loans in Portugal generally decreased between 2007 and 2023 with some fluctuation in the years before 2012. From **** percent in 2007, the annual average interest rate reduced to **** percent in 2021. In 2022, it dramatically increased to **** percent, reaching **** percent in 2023.

Interest rates implied in housing loans in Portugal have skyrocketed during the considered period. In January 2022, the interest rate implied in loans for housing construction was **** percent, while in August 2023, it exceeded **** percent. In July 2025, the highest interest rate was registered for house renovation, at **** percent. House purchases recorded an interest rate implied in loans of **** percent. Total interest rates implied in housing loans were at **** percent.

Bank Lending Rate in Portugal decreased to 3.66 percent in September from 3.68 percent in August of 2025. This dataset provides - Portugal Bank Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in Portugal was last recorded at 2.15 percent. This dataset provides - Portugal Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Mortgage credit interest rate, percent in Portugal, June, 2023 The most recent value is 3.99 percent as of June 2023, an increase compared to the previous value of 3.75 percent. Historically, the average for Portugal from January 2003 to June 2023 is 2.46 percent. The minimum of 0.82 percent was recorded in January 2022, while the maximum of 5.99 percent was reached in November 2008. | TheGlobalEconomy.com

Key information about Portugal Long Term Interest Rate

• Portugal Long Term Interest Rate: Month Avg: Portugal: ECB Harmonised was reported at 3.02 % pa in Oct 2025, compared with 3.13 % pa in the previous month.
• Portugal Long Term Interest Rate data is updated monthly, available from Jul 1993 to Oct 2025.
• The data reached an all-time high of 13.85 % pa in Jan 2012 and a record low of 0.03 % pa in Jan 2021.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, Portugal Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 2.15 % pa in Nov 2025.
• Portugal Exchange Rate against USD averaged 0.86 (USD/EUR) in Oct 2025.

The total amount of outstanding residential mortgage lending in Portugal generally decreased between 2014 and 2019, followed by an increase until 2022 and another in 2024. As of the third quarter of 2024, the total outstanding residential mortgage lending in Portugal stood at ***** billion euros. A total of three European countries exceeded *** trillion in outstanding residential mortgage lending - the United Kingdom, Germany, and France.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

Portugal - Housing cost overburden rate: Owner, with mortgage or loan was 3.80% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Portugal - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on November of 2025. Historically, Portugal - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 8.50% in December of 2011 and a record low of 1.40% in December of 2022.

The mortgage interest rate in Sweden rose dramatically in 2022, following a long period of mortgages maintaining rates below two percent. In the first quarter of 2025, the average weighted interest rate stood at **** percent, more than one percentage point below the rate in the first quarter of 2024. In Europe, Sweden's mortgage interest rate ranked alongside Germany and Portugal.  Homeownership in Sweden  The homeownership rate in Sweden did not vary significantly over the period from 2008 to 2019. It peaked in 2010 and slightly fluctuated the following years. The rate was lowest in 2019, amounting to roughly **** percent. Profile of the European homeowner  Swedes, Germans, Austrians, Turks, and Danes are the European citizens for who homeownership was the least common. Romania was the country with the highest homeownership rate among selected European countries in 2021, followed by Slovakia. Both countries had a rate higher than ** percent. In general, it seemed to be more common to own a home in Eastern European countries than in the Western part of the continent.

Portugal - Overcrowding rate: Owner, no outstanding mortgage or housing loan was 5.90% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Portugal - Overcrowding rate: Owner, no outstanding mortgage or housing loan - last updated from the EUROSTAT on November of 2025. Historically, Portugal - Overcrowding rate: Owner, no outstanding mortgage or housing loan reached a record high of 9.30% in December of 2010 and a record low of 5.40% in December of 2020.

This dataset analyzes Portugal’s real estate outlook for 2025, including expected price growth ranges, underlying demand drivers, and economic factors such as ECB policy, mortgage rates, foreign investment flows, and domestic affordability pressures. It provides a clear baseline scenario for price evolution and market stability based on recent performance and structural indicators.

Mortgage credit interest rate, percent in Portugal, juin, 2023 Pour cet indicateur, Bank of Portugal fournit des données pour la Portugal de janvier 2003 à juin 2023. La valeur moyenne pour Portugal pendant cette période était de 2.46 pour cent avec un minimum de 0.82 pour cent en janvier 2022 et un maximum de 5.99 pour cent en novembre 2008. | TheGlobalEconomy.com

The average mortgage interest rate decreased in nearly every country in Europe between 2012 and 2021, followed by an increase in response to inflation. In the first quarter of 2025, Poland, Hungary, and Romania topped the ranking as the countries with the highest mortgage interest rates in Europe. Conversely, Finland, Belgium, and Spain displayed the lowest interest rates. The UK, which is the country with the largest value of mortgages outstanding, had an interest rate of **** percent.

Portugal - Overcrowding rate: Owner, with mortgage or loan was 11.10% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Portugal - Overcrowding rate: Owner, with mortgage or loan - last updated from the EUROSTAT on December of 2025. Historically, Portugal - Overcrowding rate: Owner, with mortgage or loan reached a record high of 12.10% in December of 2010 and a record low of 7.30% in December of 2017.

The mortgage credit interest rate is the average interest rate on mortgage loan products offered to individuals and households by the commercial banks in the country. The mortgage credit is a loan used to finance the purchase of real estate. The table shows the latest available data from the national authorities as well as the values from three months ago and one year ago. The data are updated continuously.

Portugal - Severe housing deprivation rate: Owner, with mortgage or loan was 4.20% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Portugal - Severe housing deprivation rate: Owner, with mortgage or loan - last updated from the EUROSTAT on November of 2025. Historically, Portugal - Severe housing deprivation rate: Owner, with mortgage or loan reached a record high of 4.40% in December of 2006 and a record low of 2.20% in December of 2011.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.