In November, mortgage lending volumes fell by almost 40% in the Canary Islands.

New home mortgage signings fell nationally in November 2023 by 19.1% year-over-year to 32,645 transactions, marking a string of ten consecutive months of declines. In the Canary Islands, where 1,337 operations were registered, the decline was even more pronounced – 38.2%, the fourth highest in the country, as reported this Thursday by the National Institute of Statistics (INE).

Despite this drop in year-to-year rates, the mortgage firm posted a 2.3% increase nationally from the previous month, October. However, it has accumulated a 17.8% decline year-to-date after the impact of successive interest rate hikes that made financing more expensive and reduced the buying and selling of homes.

In the Canary Islands, the mortgage firm recorded 600 fewer transactions in November than in October last year.

The average interest rate on mortgages for new homes in November was 3.27%, and the average term was 24 years. More than half of the mortgages (53.2%) were signed at a fixed rate, while the remaining 46.8% were signed at a variable rate.