Portuguese families breathe a sigh of relief with the pause in rising installments, although amounts remain historically high.

After successive months of increases, mortgage payments in Portugal stabilized in August, following the ECB’s decision to keep interest rates unchanged. This pause has brought some relief to families, who have faced significant hikes over the past two years.

According to data from the Bank of Portugal, the average of new installments remained practically unchanged compared to July, reflecting the stabilization of Euribor rates. However, despite the absence of new increases, costs remain high and represent a significant share of households’ disposable income.

Experts warn that the situation still requires caution. Although there is the prospect of interest rate cuts in 2025, the sustainability of mortgage credit will depend on the evolution of the economy and the ability to maintain employment levels. Many households are still under financial strain, which calls for support measures and close monitoring by the authorities.

For families, stabilization is a positive sign and allows some medium-term planning. However, the future of mortgage credit in Portugal will continue to depend on the balance between European monetary policy, the stability of the banking sector, and the resilience of the national economy.