Home Mortgages Fell by 42.2% in June

The number of new mortgages constituted on homes in June stood at 14,053, which is a drop of 42.2% from the same month in 2012, according to figures released on Tuesday by the National Statistics Institute.

June’s year-on-year decline, accumulating 38 consecutive months of falls, is much more pronounced than in May, when the number of home mortgages decreased by 29%.

In addition, the total number of mortgages on homes (14,053) is the lowest in any month within the comparable historical series, which began in 2003.

The average value of the new mortgages reached 97,495 euros in the sixth month of the year, which is 9% lower than the same month of 2012, while the borrowed capital reduced by 47.4% year-on-year, to 1,370 million euros.

In monthly terms (June over May), Diario Sur reported that mortgages on homes fell by 23.7%, the biggest drop in this month since 2009. The capital borrowed for these mortgages recorded a monthly decline of 22.8%, its biggest drop in the last five years.

With the June decline, housing mortgages accumulated a drop of 23.5% in the first half of the year compared to the same period in 2012, with declines of 27.4% in the capital borrowed and 5% on the average value.

According to the statistical agency’s data, during the sixth month of the year, a total of 23,613 mortgages were constituted on rural and urban properties (within the latter includes dwellings), representing a decrease of 42% compared to June 2012.

The capital for mortgages granted fell by 43.2% over the same month of last year, to 2,817 million euros, while the average mortgage value on all rural and urban properties amounted to 119,307 euros, which is 2% less than in June 2012.