Mortgage loans fell 17.8% in 2023 after two years of growth

In parallel with the decline in sales, last year ended with home mortgage loans falling 17.8% to a three-year low since the 2020 pandemic, while leverage fell 19.4%.

According to mortgage statistics published today by the National Institute of Statistics (INAND).

With this decline in 2023, a year marked by interest rate hikes to control inflation, the mortgage lending firm returns to decline after two years of increases

According to mortgage statistics published today by the National Institute of Statistics (INAND).

With that decline in 2023, a year marked by interest rate hikes to control inflation, the home mortgage firm returns to decline after two years of growth, with gains of 11% and 23.8% in 2022 and 2021, respectively. loans issued for housing exceeded 400,000. Mortgage loans fell in all autonomous communities, especially in La La Rioja (-36.1%) and Galicia (-21.9%).

Average mortgages on homes rose 2% in 2023 to €142,074, while loan capital fell 19.4% for the whole of last year to top €54,209 million.

At the end of 2023, the average mortgage interest rate reached 3.32%, up from 3.27% in November and equal to the rate reached in October, which is the highest since 2015. The average loan term was 24 years.

In December last year, 45.8% of mortgages were signed at an adjustable rate, and 54.2% at a fixed rate.

Francisco Iñareta, spokesman for the Idealist party, noted in a statement that “The number of mortgage transactions was hit harder by rising funding costs, but the decline was not enough to slow rising prices, which rose 8.1% in 2023.”

“Rising rates and the subsequent increase in the price of Euribor this year have had a greater impact on those households who were still on an adjustable rate mortgage and whose mortgage payments have risen significantly,” he adds.

“For new mortgages, financial institutions have been forced to increase the rates at which they underwrite their mortgages, but they have not passed on the entire rate increase to them due to the huge competition they have to attract profile customers. Perhaps thanks to this “trade war” based on fixed and mixed mortgages, the volume of mortgages issued did not fall further.

Next extension

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button