The number of signed mortgages grows, but not with the same intensity. The difference between the data for March 2022 compared to the previous year was 18%, while in April this year the number of signed mortgages increased by 4.5% more compared to the 2021 data. This means that the pace of signatures has started to slow down. These are the results of the latest report prepared by the National Institute of Statistics (INE) on mortgages in Spain.
Also, comparing with the month of March 2022, the number of mortgages signed in April was 22.9% lower. This may be due to rising interest ratesa trend whose origin can be found in inflation and Russia’s attack on Ukraine.
Could rates continue to rise? There is a determining factor. “the euribor, Historically, it had never risen so much in such a short period of time, but we are also experiencing an exceptional macroeconomic situation,” explains the director of Mortgages at iAhorro, Simone Colombelli. In recent months it has begun to accelerate relentlesslyreason why banks now bet on variable mortgages. This is causing a rise in interest on fixed-rate loans, a product that until now many customers had opted for.
In fact, the latest data from the INE support it. Among the mortgages constituted in April 75.3% have been at a fixed rate and 24.7% at a variable rate. Likewise, with respect to the interest rate, the variables have an average TIN of 2.16% during the first year (from then on they depend on the Euribor) and the fixed ones have a 2.65%.
Andalusia, Catalonia and Madrid in the lead
Regarding the data by autonomous community, Andalusia continues to lead with 6,688 mortgages constituted. It is closely followed by Catalonia (6,141) and the Community of Madrid (5,598).
Keep in mind that Catalonia and the Community of Madrid are the places with the highest housing prices, but in those who contribute the most savings when purchasing a home. According to the iAhorro index, Catalans request 201,000 euros for a mortgage (269,000 euros less) and Madrid residents 218,000 (147,000 euros less than the cost of the property).
Secondly, five autonomous communities have signed fewer mortgages compared to the same month of 2021. These are Extremadura (12.7% less), Madrid (9.5 less, despite being in the ranking of the places with the most mortgages signed), La Rioja (-3, 3%) and the Basque Country (-3.2%).
Subrogations continue to fall
The rise in the Euribor and the consequent rise in rates is causing many people have decided not to modify their mortgage. According to the latest data from the INE, there have been 13,034 mortgage modifications during the month of April 2022, 40.9% less than on the same date of the previous year.
In addition, of the 13,034 mortgages that have changed their conditions, 25.4% have done so to modify their interest rate. In this way, the percentage of fixed interest mortgages increases from 21.8% to 50.2%, while that of mortgages at variable interest decreases from 76.9% to 45.9%.
This means that there are still users who, due to the rise in the Euribor, have decided to opt for a fixed-rate mortgage to make sure some stability.