The signing of mortgages in the first half of 2023 fell by 14.2%, according to the latest statistics published by the National Institute of Statistics. In the first six months of 2022, 310,523 mortgage loans were contracted, compared to the 266,350 registered in the same period of this year. Specifically, in the month of June, 33,478 loans were signed, 21.9% less than in the same month last year. This is the fifth month in a row in which fewer loans are signed than in the previous year.
According to the real estate portal Fotocasa, these figures "show that we are returning to pre-pandemic normality." "The data for 2023 are very similar to those of 2019, despite the situation of economic disruption and rate hikes that are being experienced this year. Therefore, the firms continue with intensity, with positive data and demonstrate the great resilience of the real estate," adds María Matos, company spokesperson.
Higher interest rate since 2017
In the sixth month of the year, the highest interest rate since 2017 was recorded and the third consecutive rate above 3%, specifically at 3.19%, which is one point more than a year ago. The average amount of mortgages is 143,796 euros with an average term of 24 years, as reported by the INE.
In June, 7,310 million euros were lent, which, in the accumulated annual figure, represents 9.9% less than in the first half of 2022. Specifically, in mortgages for homes, the amount financed has fallen by 15% in so far this year and the average credit amount has fallen slightly by 1.5%.
During the month of June, 40% of the mortgages were at a variable rate, while 60% were signed at a fixed rate, with an average interest of 2.84% and 3.45%, respectively. “The strategy of financial institutions to make variable mortgages cheaper and fixed mortgages tougher is already having results and it is expected that there will be an even more pronounced change in the trend to the detriment of fixed mortgages. We are already seeing varieties such as mixed mortgages emerge, which are becoming the star product of banks,” explains the Fotocasa spokesperson.
Euribor moderation
The Euribor, the reference index for variable mortgages, gave a break during August, closing lower compared to July, for the first time after 19 consecutive months of increases. The indicator closed the seventh month of the year at 4.149% and, in the eighth, it stands at 4.072%, awaiting final closure.
“Although we could be close to the end of the rate increases, the Euribor continues to rise, presenting the largest increase in the last 15 years, exceeding 4% and heading towards 4.5%. The banking turbulence and the entry into technical recession of the European Union have managed to moderate the aggressiveness of the rate increases," concludes María Matos.
