Since August, home loans in Lek have become cheaper. According to the Bank of Albania, the average interest rate for loans in lek decreased to 3.89% from 4.04% that was in July, marking the lowest value of the average rate for home loans in a year.<\/p>\n
Average interest rates began to gradually decline in November 2022, where the average level was 4.99%, and currently remain significantly below average by over 1% margin.<\/p>\n
But what influenced this trend?<\/p>\n
Inhibition of the increase in the interest rate by the Central Bank as a preventive measure to control inflation. Specifically, the root of the Treasury Bond yield rate, the financial instrument that the government borrows from investors and promises to pay interest, is set as a reference for long-term real estate loans.<\/p>\n
Interest rates on variable interest rate loans are linked to the performance of 12-month yields, as they are rate-determining.<\/p>\n
During this year, treasury bond yields have suffered a decline, falling very close to the base interest rate.<\/p>\n
The interest rate for loans in euros also decreased, which in August for new loans dropped to 4.97% from 5.32% in July.<\/p>\n
According to the Bank of Albania, at the end of August, the loan portfolio for the purchase of real estate by individuals reached 176 billion lek or 1.66 billion euros.<\/p>\n
Compared to a year ago, the portfolio has increased by 8.7%, while compared to three years ago, it has increased by 42.8%, thus showing a significant increase in the demand for loans from property buyers.<\/p>\n
Home loan is a product that increases the long-term portfolios of banks and spreads the credit risk well. Home loans are also among the best quality products as they carry the lowest NPL ratio.<\/p>\n
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Since August, home loans in Lek have become cheaper. According to the Bank of Albania, the average interest rate for loans in lek decreased to 3.89% from 4.04% that was in July, marking the lowest value of the average rate for home loans in a year. Average interest rates began to gradually decline in November […]<\/p>\n","protected":false},"author":23,"featured_media":61872,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[153,1803],"tags":[1737,4320,1679,1851,619,243,151,1870,4105],"acf":[],"yoast_head":"\n