Mortgage Interest Rates Fall to Lowest Level in Decade
According to Bank of Estonia, the Euribor's continued decline led home loan interest rates to fall to a ten-year low in November.
New mortgages taken out in November averaged a 2.5 percent interest rate, down from 2.7 percent in October and 2.9 percent in June and July, the central bank said.
The number of new mortgages has increased by 22 percent since last November.
Long-term business loans had an average interest rate of 3.1 percent in November.
The combined sum of business and private loans grew by 54 million euros last month totaling 14.7 billion euros - a 1.9 percent increase in the last 12 months.
Jana Kask, head of the bank’s Financial Sector Policy Subdivision, said that the growth in loans picked up in spring of this year and has not faded. The growth is being driven mainly by business loans, added Kask.
Business and household savings increased by 63 million to 8.5 billion euros last month, an increase of 9.2 percent over the year.