GOOD NEWS FOR REAL ESTATE

According to the Monitoring Report of Bank Retail Markets of Bank of Portugal, in 2015 the number of new contracts for housing loans and the amount of credit granted increased in 2015, respectively, 51% and 65% compared to 2014.
The average amount of new contracts also increased (9.2%) as well as the average term contract. About 89.5% of contracts were concluded with a variable interest rate (88.8% in 2014). The six-month Euribor remained the most widely used reference rate (59.3% of contracts).
The average spread of contracts stood at 2.31 percentage points, 0.67 percentage points less than in 2014.
 The number and amount of prepayments increased, respectively, 1.8% and 31.5% over the previous year.
And, finally, the number of renegotiations of contracts decreased by 18.6%.
It seems good news.

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