ABI, rates down in March, average mortgage rate down to 3.79%

The downward trend in interest rates already started in February is confirmed. In March, according to data from the Abi Monthly Report, the average rate on new transactions for the purchase of homes decreased to 3.79% from 3.89% in February and compared to 4.42% in December 2023; the average rate on new loans to businesses dropped to 5.26% from 5.34% in February 2024 and from 5.45% in December 2023; the average rate on total loans (i.e. underwritten over the years) dropped to 4.79% from 4.80% in the previous month. The Report also records a drop in market rates in the first 10 days of April.

In the first 10 days of this month, in fact, the BTP rate averaged 3.78%, down 121 points from the high recorded in October 2023, and the 10-year IRS rate (widely used in mortgages) averaged 2.68%, down 84 points from the high recorded in October 2023. The six-month BOT rate averaged 3.67%, down 38 points from the high recorded in October 2023 while the 3-month Euribor averaged 3.89%, down 11 points from the high recorded in October 2023.

The monthly ABI report also records an increase in funding: both indirect and direct funding is growing. Indirect deposits increased by about EUR 218bn between February 2023 and February 2024 (EUR 137.8bn households, EUR 21.3bn companies and the remainder to other sectors, financial companies, insurance companies, public administration). In March 2024, medium- and long-term funding, through bonds, grew by 18.5% year-on-year (+17.9% in the previous month).

As a result, deposits alone, in their various forms, fell by 0.3% year-on-year in March 2024, a slowdown compared to February 2024 (-1.1%). Total direct funding (deposits from resident customers and bonds) in March 2024 increased by 1.7% year-on-year, continuing the upward trend recorded in the previous two months (+0.9% in February 2024 and +0.5% in January 2024.