Home Mortgages Fell 14.4% in October

December 31st, 2012

According to the latest figures released by the National Statistics Institute, the number of new mortgages on homes in October this year totalled 19,105, which is down 14.4% compared to the same month of 2011. With October’s year-on-year decline, home mortgages accumulated 30 consecutive months of declines. However, the decline in October was less pronounced than September’s decline, when the number of home mortgages fell by 32.2%, or of the decline in August, when they fell by 28.5%.

In addition, the organisation reported that the new home mortgages total is the lowest for any month in the comparable historical series, which began in 2003, with the ‘rock bottom’ being recorded in August, when 21,106 new mortgages were registered, 89 less than in September.

In the first ten months of the year, mortgages on homes fell by 33.2% over the same period of 2011, a decrease of 38.8% on borrowed capital and 8.4% in average mortgage values. The average value of a home mortgage in October stood at 100,665 euros, 4.9% less than the same month of 2011, while the borrowed capital fell by 18.6% to 1,923.21 million euros.

Month-on-month (October over September), mortgages on homes fell by 9.9%, compared with the 0.4% rise experienced in monthly values in September, the smallest decline in October since 2009. According to data from the statistical agency, during the tenth month of the year 31,405 mortgages were constituted on rural and urban properties (the latter includes housing), which represents a decrease of 19.8% compared to October 2011.

The capital for mortgages granted fell by 21.2% to 3,574.3 million euros, while the average mortgage value on all rural and urban properties totalled 113,816 euros, 1.7% less than in October 2011.

The average interest rate for the total of mortgage loans stood at 4.4%, which is 1.7% less than in October last year. In the case of housing, the average interest rate was 4.33%, up 3.4% over the same month in 2011. The average savings banks interest rate for mortgage loans was 4.36% with an average term of 20 years. For banks, the average rate was 4.52% with an average term of 21 years.

Diario Sur reported that 93.7% of the mortgages contracted in October used a variable rate, compared to 6.3% on a fixed rate. The Euribor is the most used reference rate in the creation of variable rate mortgages, specifically in 85% of the new contracts.

The regions which registered the highest number of new mortgages on homes were Andalusia (3,645) and Catalonia (3,907). The highest year-on-year rate change was recorded in the Principality of Asturias, with an increase of 48.3%.

The regions where most capital was loaned for the establishment of new home mortgages were Catalonia (nearly 338.4 million euros), Andalucía (around 332.3 million euros) and Madrid (about 308.2 million euros).

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