Banks already reported this during the first quarter results presentations, increase in interest rates launched to combat inflation. effect on loan demand mortgage and will soon appear in the statistics. And so it was. Although it took a little longer to arrive than expected, the latest data released this Friday by the National Institute of Statistics (INE) are available throughout March. Signing of new loans for home purchase decreased by 10.5% at an annual rate.
Specifically, formalized 1,499 mortgages compared to 1,675 mortgages in the same period of 2022. While the drop is less than recorded nationwide, where the drop reached 15.7%, it is still significant. It should also be noted that the INE receives information from the Real Estate Registry, which assumes a certain delay, as it is normal for one month to pass from the signing of the mortgage to its registration. In this way, the decrease reflected in the figures is actually from the beginning of the year.
In any case, with strict adherence to the INE data, in the first three months of the fiscal year Alicante mortgage market still going a positive balance even at the minimum. Thus, in the January-March period, 4,822 loans were recorded, which is 1.8% more to finance housing purchases.
Regarding the business volume, the banks that give loans in the province 154.8 million Average amount of each mortgage issued in Alicante in March 103.300 €exactly the same as a year ago.
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Information from INE also shows that the majority of citizens continue to prefer it. flat rate, despite the cost increase in this modality. especially, until 63.9% of all mortgages signed At the national level, they were of this type at the time, although it has been clarified that the public agency also includes mixed mortgages in this category – mixed mortgages that have had a fixed initial tranche and then become variable – in recent months. they are more successful. On the other hand, floating rate loans represented the remaining 36.1%.
Regarding the price, initial interest rate Number of mortgages signed across Spain in March 2.99%. A figure that is almost one point below Euribor’s current level, which currently exceeds 3.8%, but it should be noted that these mortgages reflect market conditions at the time they were negotiated. In other words, those that exist around October or November.
In this way, the market situation begins to reflect exactly what the ECB and other central banks are looking for with their policy of raising interest rates, which not only cool lending event and with it the economy will bring prices under control. In this strategy, construction is considered the key sector as it has dragged down many other sectors and therefore its slowdown has had a far-reaching impact on the economy as a whole.
However, it remains to be seen whether this is one in the case of Alicante. if continued decline or any rebound occurs due to the unique characteristics of the real estate market in which it is located. 40% to 50% of housing demand due to buyers foreignThis keeps the number of transactions high.
According to Autonomies, the largest decline in registered mortgages during March occurred in the Balearic Islands, down 31%. Madrid down 23.7%; Castilla-La Mancha with 22.1%; La Rioja with 19.4% contraction; and Andalusia, with 17.3%. In the Community of Valencia as a whole, the decrease was 6.3%. Mortgage issuance in Asturias increased only slightly, at 0.8%.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.