New Mortgages Fell by 28.5% in August

October 23rd, 2012

The number of new mortgages granted on homes stood at 21,106 in August. This is the lowest figure since the comparable historical series began in 2003 and, according to the National Statistics Institute, represents a decrease of 28.5% year-on-year. This latest figure marks 28 consecutive months of recorded decreases.

Up until now, the lowest figure recorded was in April this year, when 21,498 new home mortgages were granted.

In the first eight months of the year, the number of mortgages granted fell by 34.7% over the same period of 2011, while month-on-month (August over July), home mortgages fell by 13.1%, compared to the 0.1% decrease experienced month-on-month in July.

Borrowed Capital Fell by 31%

Borrowed capital decreased by 30.9% year-on-year in August, to 2,186.4 million euros, while the average loan value for the purchase of a home reached 103,592 euros, 3.3% less than in the same month of 2011.

El Economista reported that banks were the institutions that granted the greatest number of mortgage loans in August, accounting for 71.2% of the total, followed by other financial institutions (18.4%) and savings banks (10.4%). With regards to the capital borrowed, banks made up 72.9% of the total, savings banks 9.5%, and other financial institutions 17.6%.

Pursuant to the terms of the loans, the savings banks granted an average period of 22 years with an average interest rate of 4.49%, above the banks’ rate, which was 4.37%, with a term of 21 years.

In addition, the statistics agency reported that 35,641 mortgage cancellations were registered in August, which is 12.9% more than the same month of 2011.

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Comments

  1. 23/10/12 22:27   J Jackson

    The banks caused all the problems we have in the first instance.
    The problem was totally uncontrolled greed.
    Profit was no longer enough.It had to be a killing.
    Higher profits(from the shyster and often illegal practices) produced more money , more money meant it had to earn more profit, and so on ad infinitum.
    Money just cant expand exponentially as it is finite(that was before “quantative easing”).So as with all mad rushes, pursued as a madness,like the lemmings.The Bankers blinded with mad greed ,failed to see the cliff edge and OOOPS over we went.
    I say WE because Bankers never risk own money.
    Now as the banks own the Politicians and control governments,they cooked up as new scheme and asked there emplyess”the politicians ” to foist it on the world. Call it Austerity measures.
    So as any good employee would (if he wants to keep his job) the politicians JUMPED when they were told to JUMP and instituted AUSTERITY.
    What a wonderland for the bankers.they pay virtually 0% interest and are inundated in CASH by the poor peasants,who have no alternative.
    If you have spent a life on an assembly line in a motor works or some similar intallectual employment.You do have saving, which of course one cannot keep under one’s mattress.
    The opportunities for investment are endless all at near to nothing and AGAIN with the BANKS carrying ZERO risk and the sucker peasants carrying all.
    Now the banks have all the peasants money but will not lend to the peasants as they are risky.
    But of course the banks are not unduly concerned as they have all the cash in their hands and have to pay virtually nothing for it and loan what they do loan at extarordinary % of interest.
    If a peasant gives his/hers cash to the bank and ghets .250f 1 % a year and after the bank of course adds charges that are more than that for running the account.What % do the bank earn when they .pay NOTHING for money and loan it at amazing rates of interest .Of course they can sit on Billions and only loan to “sure things” money is costing them NOTHING.
    Meanwhile we have Quantative easing.
    If you wonder if you are being SCREWED. YES YOU ARE.


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