The Bank of Portugal published updated statistics on interest rates and volumes of new bank loans and deposits, covering transactions between banks resident in Portugal and households and firms resident in the euro area through December 2024. The release points to lower average rates on new term deposits and a continued decline in mortgage rates, alongside record volumes of new housing loan contracts. Household term deposit rates averaged 2.16% in December 2024, down from 3.08% a year earlier, while new household term deposits totalled EUR 128.4bn in 2024, the highest annual value since 2003, with deposits up to one year representing 97% of volumes. Corporate term deposit rates fell to 2.66% from 3.46% and new corporate term deposits reached EUR 86.9bn, with maturities up to one year accounting for 99%. New lending to households totalled EUR 34.3bn in 2024, with new mortgage contracts reaching EUR 17.6bn, the highest since the mortgage series began in December 2014; from August 2024, borrowers under 35 represented 47% of new lending for owner-occupied permanent residences following the entry into force of a first-home tax exemption for people up to age 35. Renegotiations fell to EUR 7.8bn from EUR 12.0bn, largely driven by housing loans, while the average rate on new housing lending declined to 3.20% in December 2024 from 4.19% a year earlier and the consumer lending rate stood at 8.56%. New lending to non-financial corporations rose to EUR 26.7bn and the average rate on new corporate loans fell to 4.30% from 5.66%. The next update is scheduled for 5 March 2025.

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