Mortgage Expenses in Spain, Portugal & Finland Are Blowing Through the Roof
In July 2023, the Spanish mortgage landscape witnessed a significant escalation in costs, with average interest rates on outstanding loans jumping by almost 150% year-over-year, from 1.35% to 3.33% per annum. Comparative figures from Portugal and Finland underlined an even more pronounced trend, with increases of 248% and 257% respectively. And if that wasn’t bad enough: Since its low in February 2022 of 0.82% per annum Portuguese mortgage costs have now more than quintupled.
This cannot be good for the respective housing markets.
Conversely, in the German market, the effects of rising mortgage rates are likely to be felt over a longer period, potentially more than a decade. This lengthy adjustment period provides the German housing market with a degree of stability, which might mitigate immediate concerns.