The mortgage market once again gives a new impulse to real estate sales. In October, touching minimum interest rates and maximum mortgage contracting for homes.
Activity levels at the mortgage loan firm continue to recover. Although more moderately.
The ‘Mortgage Statistics. October 2017 ‘, prepared by the INE, registers a new increase in mortgages for homes. A product that reaches 24,706 signatures per month. Increasing the figures of last year by 8.2%.
It also triggers the average amount of the loans up to 120,628 euros. 9.2% more in the interannual rate.
While the average interest rate is 2.67%. Also lower than that registered in 2016.
In this context, the Community of Madrid and Andalusia stand out as the most active. Celebrating about 5,000 monthly operations each.
Moderate rebound in home mortgages
The contracting of mortgage loans continues to increase.
The number of mortgages for home purchases stood at 24,706 during the month of October. 8.2% more than the previous year.
With this new rebound, the mortgage activity chains six consecutive months in positive. Although the hiring falls a point with respect to the previous month, when the concession of mortgages grew to 9.2% year-on-year.
In fact, comparing the months of October and September, the signature of mortgages for homes has fallen by 15.9%. And, although October 2016 was also a month of falls, the dencenso has been more pronounced in this last period.
The average amount is consolidated at € 120,000
In addition to activity levels, it has also increased the amount of loans.
In October, the average amount of mortgages for homes rose by 9.2% year-on-year. Consolidating around 120,628 euros.
Although it falls 2.4% over the previous month. When the mortgage loans had an average amount of 123,600 euros.
On the other hand, the total capital of the loans reached 2,980.2 million euros. 18.2% more compared to October 2016.
The Community of Madrid is a leader in activity
The communities of Madrid and Andalusia concentrate most of the mortgage activity.
In October, Madrid celebrated the signing of 5,168 mortgages. Ahead of Andalusia with 4,847 mortgages, Catalonia with 3,998 or the Valencian Community with 2,380.
While the largest increases compared to last year were concentrated in La Rioja (+ 87%), the Community of Madrid (+ 31.2%) and Galicia (+ 22.1%).
In terms of borrowed capital, Madrid once again became the undisputed leader with mortgages worth 859.5 million euros. Exceeding both Catalonia (575.5 million) and Andalusia (492.2 million).
Interest rates at historic lows
Along with the contracting and the amount of the loans, the secret of the mortgage activity is in the low interest rates.
The average rate of new mortgages for homes fell in October to 2.67%. While a year ago it was 3.17%, in October 2016. At the same time, the average term of the loans was set at 24 months.
Another detail that should be highlighted is the evolution of the different types of mortgages. Constituted 63% of variable rate loans and the remaining 37% fixed rate.
And falling again the number of registry changes. To be exact, in October, 7,228 changes were made. 14.7% less in the interannual rate. Operations that fell by 18.7% among mortgages for homes.
The real estate market advances by credit
Most of the great experts have been congratulated for the excellent figures of the mortgages of October.
The levels of mortgage activity that continue to grow but are still far from the real estate boom.
“The increase in mortgages and the fall in interest rates boosts competition among banks”, said Fernando Encinar (Idealista).
“Mortgage financing takes months to moderate its growth and that makes mortgages for homes are normalized”, says Beatriz Toribio (Fotocasa).
“With the current scenario of minimum rates and negative Euribor, the client must study well the type of mortgage to be hired, preparing for other less favorable scenarios“, recalls Ferran font (Pisos.com).
