The percentage of fixed-rate mortgages quadruples in one year

Mortgages granted at a fixed rate increased significantly during 2016 and stood at 30.2% last November, according to data from the Spanish Mortgage Association (AHE).
The rate of this type of mortgages over the total registered in the eleventh month of the year significantly contrasts with the 5.7% corresponding to 2015 and the 7.23% of November of that year, according to the AHE.
The increase in fixed rate mortgages reduces the share of the variables, although these remain the most contracted, with 42.8% of the total in November, while 27% of residential loans corresponded to mortgages with a Fixed initial rate of between one and ten years.
Overall, in November, the trend of an increase in the contracting of mortgages with respect to previous years continued. Thus, accumulated from the beginning of the year to November 2016 shows a year-on-year increase of 15% for homes, reaching 260,581 mortgages.
In the third quarter of 2016, the effective mortgage rate remained stable compared to the previous three months, standing at 1.66%, 19% lower than the previous year.
Between July and September last year, the average amount of residential mortgages amounted to € 112,952, up 6.34% over the same period in 2015.

The outstanding balance of mortgages fell by 3.68% in November compared to the same month last year, reaching 657,311 million euros, and the bulk of this outstanding balance corresponded to banks and savings banks, with 597,501 million of euros.

This reduction is due to the fact that the new mortgage loan production "is still insufficient" to compensate for the loss of credit caused by debt write-offs and / or cancellations, according to the AHE.
As for the outstanding balance of credit to the resident sector, in November fell 2.2%, to 1.14 trillion euros. Again, banks and savings banks copied most, with 1.02 trillion euros.
On the other hand, the volume of mortgages managed also declined in the eleventh month of the year, falling by 3.93% compared to November 2015, to 666,348 million euros.
Real estate loans to households, which continued to be the most representative segment (almost 77% of total real estate loans), fell by 3.1% to € 540,262 million.
In addition, data from the AHE reflect that doubt continued to show good results in the third quarter of last year, standing at 116.284 million euros at the end of September 2016, down 17.69% from a year earlier.
Between January and September 2016 there were 329,246 transactions, 14.85% more than in the same period of the previous year. 90% corresponded to second-hand properties.

Source: Expansión