Abi, the average mortgage rate fell to 3.61% in May


By John

The average rate on newly issued mortgages for home purchases fell to 3.61% in May compared to 3.67% recorded in April and 4.42% last December. This is what we read in the ABI’s monthly report, which indicates that the average rate on new business financing operations decreased to 5.21% compared to the 5.30% of April 2024 and the 5.45% of December 2023. Overall – according to the ABI – the average rate on total loans, including those subscribed over the years, is stable at 4.81%.

The drop in credit volumes is a consequence of the slowdown in economic growth which contributes to depressing the demand for loans: in May 2024, loans to businesses and families fell by 2.3% compared to a year earlier, the same drop recorded in April 2024 when loans to businesses had decreased by 3.4% and those to families by 1.2%. The Abi notes this in its monthly report.