Home Mortgages Decrease by 15.7% in March 2023, while Interest Rates Soar: INE Data

MADRID/MERIDA, May 26. (EUROPE PRESS) –

He number of mortgages constituted on housing has fallen and 8.9 percent last month of march respect al same month of 2022, until adding 575 loansaccording to disseminated data this friday for National Statistics Institute (INE).

For his part, he borrowed capital has decreased last month of March in Estremadura and 12.6 percent in YoY rate, until los more than 47.3 million euros.

The community of Extremadura registered in March a total of 792 mortgages on rural and urban properties by more than 79.2 million euro. Specific, 739 have been on urban farmsfor more than 67.7 million euros, and 53 on rural propertiesfor more than 11.5 million.

Regarding the more than 730 mortgages on urban properties, 575 have been about housing, 153 on other urban properties and 11 on plots, according to the INE.

Monthly (March over February), home mortgages have increased by 21.6 percent in Extremadura, while borrowed capital has risen by 13.2 percent.

NATIONAL DATA

The number of mortgages constituted on homes fell by 15.7 percent last March compared to the same month in 2022, to a total of 36,182 loans.

With the year-on-year decline in March, the home mortgage firm chains two months of negative rates after the 2 percent drop recorded in February.

The average amount of mortgages constituted on homes has fallen by 1.5 percent year-on-year in the third month of the year, to 142,663 euros, while the capital lent has decreased by 17 percent, to 5,161.8 million euros .

By autonomous communities, those that have registered the greatest number of mortgages constituted on homes in March have been Andalucía (7,280), Cataluña (6,467) and Madrid (5,515).

Likewise, the regions in which the most capital has been lent for the constitution of home mortgages have been Madrid (1,200.2 million euros), Catalonia (1,050.4 million) and Andalusia (879.5 million).

In only one community, Asturias, more home mortgages were signed last March than in the same month of 2022, with an advance of 0.8 percent. In the rest of the regions there have been interannual decreases, especially in the Balearic Islands (-31%), Madrid (-23.7%) and Castilla-La Mancha (-22.1%).

Month-on-month (March over February), home mortgages have risen 0.8 percent, while principal borrowed has risen 0.3 percent. In both cases, they are the smallest increases in a month of February since 2020.

In the first quarter of 2023, home mortgage loans are down 5.6 percent, with borrowed principal down 5.4 percent and median principal up 0.2 percent.

THE INTEREST RATE ON HOUSING LOANS SOARS

The average interest rate for all mortgage loans stood at 3.29 percent in March, its highest figure since January 2017, with an average term of 24 years.

In the case of housing, after the rate hikes adopted by the European Central Bank (ECB) and the increase in the price of the Euribor, the average interest in March was 2.99 percent, above the 1.80 percent of a year earlier and the highest since April 2017. The average term is 25 years.

36.1 percent of mortgages on homes were established last March at a variable rate, while 63.9 percent were signed at a fixed rate, almost 12 points less than in July 2022, when it peaked at 75.4 percent. The average interest rate at the beginning was 2.72 percent for variable-rate home mortgages and 3.15 percent in the case of fixed-rate ones.

The INE has revised last month the statistical series of interest rates since January 2020 after launching a new procedure to validate the results of the initial average interest rate in the constituted mortgages.

THE TOTAL NUMBER OF MORTGAGED PROPERTIES DROPS 16.9%

According to data from the statistical agency, the number of mortgages on rural and urban properties (within the latter include homes) has fallen by 16.9 percent in March compared to the same month in 2022, to a total of 47,459. loans.

The capital of the mortgage loans granted has decreased by 11.5 percent in the third month of the year, up to 7,787.3 million euros, while the average amount of the mortgages constituted on the total number of properties has risen by 6 .6 percent and has added 164,087 euros.

THE MORTGAGES THAT CHANGE THE CONDITIONS LOWER

Last March a total of 14,176 mortgages have changed their conditions, a figure 14.7 percent lower than that of the same month of 2022.

Considering the type of change in the conditions, there have been 11,399 novations (or modifications produced with the same financial entity), with an annual decrease of 16.4 percent.

The number of operations that have changed entities (subrogations to the creditor) has been 2,181, 8.1 percent less than in March 2022. For its part, in 596 mortgages the owner of the mortgaged asset has changed (subrogations to the debtor ), 3.1 percent less than a year earlier.

Of the 14,176 mortgages with changes in their conditions, 32.1 percent are due to changes in interest rates. After the change in conditions, the percentage of fixed-interest mortgages has increased from 13 percent to 40.2 percent, while that of variable-interest mortgages has decreased from 85.6 percent to 58 percent.

The Euribor is the rate to which the highest percentage of variable-rate mortgages refer, both before the change (81%) and after (54.8%).

After the modification of conditions, the average interest on loans on variable-rate mortgages has risen by one tenth, just as that of fixed-rate mortgages has increased.