Mortgage activity on residential properties dipped by 10.3 percent in January compared with the same month in 2023, totaling 33,128 loans. The average interest rate rose to levels not seen in almost a decade, signaling tighter borrowing conditions for home buyers in the United States and Canada. The rate climbed to 3.46 percent, up from 3.32 percent in December, its highest point since late 2014, according to data released by the national statistics agency. [INE]
With the year‑on‑year drop in January, home mortgage activity marks twelve consecutive months of declines, though the January drop was milder than the 17 percent decline recorded in the final month of the previous year. This trend underscores a cooling in property financing, influenced by higher rates and evolving lending criteria. [INE]
The mean amount of new housing mortgages fell 2.7 percent from the previous year, reaching €138,149, while the total capital advanced dropped 12.7 percent to €4,576.5 million. These figures reflect a shift toward smaller loan values and tighter credit conditions across the housing sector. [INE]
Following the European Central Bank’s rate policy aimed at taming inflation and the movement of the Euribor, the average rate for residential loans stood at 3.46 percent with an average loan term of 24 years. In year‑over‑year terms, the rate has increased by eight tenths of a percentage point, marking the tenth consecutive month above 3 percent. [INE]
Among loans, 41.8 percent were fixed‑rate and 58.2 percent were variable in January. The initial rate averaged 3.24 percent for variable‑rate housing loans and 3.64 percent for fixed‑rate loans. These differentials illustrate the cost dynamics buyers faced at the start of the year. [INE]
On a monthly basis, January 2024 compared with December 2023 saw a 32.9 percent rise in housing mortgages and a 30.7 percent gain in the capital lent, signaling a seasonal rebound in lending activity at the start of the year. [INE]
Madrid and Andalusia Lead in Mortgage Activity
By autonomous community, Madrid registered 6,167 mortgages, followed by Andalusia with 6,062 and Catalonia with 5,927 in January. [INE]
Fourteen communities posted lower numbers in January 2024 compared with January 2023, with notable declines in Asturias, Navarra, Cantabria, and Andalusia. Madrid, Galicia, and Aragón posted year‑over‑year increases. [INE]
The total number of mortgages on rural and urban properties alike fell by 11.1 percent in January versus 2023, totaling 42,478 loans. The overall loan capital declined by 11.3 percent to €6,975.8 million, while the average value of mortgages on all properties in the dataset slipped by 0.2 percent to €164,222. [INE]
Mortgages with Changed Conditions Decline
The January total of 11,788 loans that altered their terms represented a 5.8 percent drop from January 2023. About 9,052 were novations with the same lender, down 12.2 percent year over year. Lending changes involving a switch of creditor reached 2,307, rising 34.4 percent from the prior year, while 429 loans changed the property owner, down 12.1 percent. [INE]
Of all mortgages with changed conditions, 48.9 percent were due to interest rate modifications. [INE]