signature mortgages fell 14.2% in the first half of 2023According to the latest statistics published by the National Institute of Statistics. In the first six months of 2022, 310,523 housing loan agreements were made, compared to 266,350 housing loans recorded in the same period of this year. In particular, in June, 33,478 loans signed, 21.9% less compared to the same month of the previous year. This is the fifth month in a row that fewer loans have been signed than the previous year.
According to the real estate portal Fotocasa, these figures “show that pre-pandemic normalcy has returned.” “The data for 2023 is very similar to the data for 2019.Despite the economic deterioration and interest rate hikes this year. That’s why companies continue with intensely positive data, demonstrating the great durability of real estate,” adds María Matos, spokesperson for the company.
Higher interest rate since 2017
in the sixth month of the year Highest interest rate recorded since 2017 and 3.19%, one point higher than a year ago, for the third consecutive rise of over 3%. The average mortgage amount is as follows: 143.796 Euros with an average maturity of 24 yearsAs reported by INE.
7 billion 310 million euros were loaned in June; this represents in annual accumulation: 9.9% less than in the first half of 2022. In particular, the amount financed in residential mortgages has dropped by 15% so far this year, and the average loan amount has also dropped slightly by 1.5%.
During the month of June, 40 percent of the mortgages were signed with floating interest and 60 percent with fixed interest.Average interest rates are 2.84% and 3.45%, respectively. “Financial institutions’ strategy of lowering the prices of floating mortgages and hardening fixed ones is already paying off, and a more pronounced change in trend is expected to the detriment of fixed mortgages. We are already seeing how variants such as mixed mortgages are emerging that have become the star product of banks,” explains a Fotocasa spokesperson.
Euribor Moderation
Euribor, the reference index for variable housing loans, took a breather in August and closed lower than July for the first time after 19 consecutive increases. The indicator completed the seventh month of the year at the level of 4.19%, and in the eighth month It stands at 4.072%waiting for the final closure.
“Euribor continues to rise even though we are nearing the end of rate hikes. biggest increase in the last 15 years exceeding 4 percent, going towards 4.5 percent. The banking turmoil and the entry into the technical recession in the European Union have managed to moderate the aggression of interest rate hikes,” concludes María Matos.