Mortgages on homes rise 29.1% in August and chained four months of hikes

Published on November 8th 2017

The number of mortgages constituted on houses inscribed in the registries of the property stood at 26.583 last August, 29.1% higher than the same month of 2016

This year-on-year rally, which accumulates four consecutive months of increases, is slightly lower than that experienced in July, when mortgaged homes increased by 32.9%.

The average amount of mortgages on housing grew by 0.7% compared to August 2016, to 111,488 euros, while borrowed capital rose 30% year on year, to stand at 2,963.6 million euros.

In monthly rate (August on July), mortgages on housing increased by 6.9%, while borrowed capital fell by 0.3%.

The average interest rate for mortgage loans on housing reached 2.77% last August, compared to 3.24% in the same month of 2016, with an average term of 23 years. 59.6% of mortgages on housing were made at a variable rate, in contrast to the 40.4% that was signed at a fixed rate. The latter have increased by 55.4% in the annual rate.

For mortgages on variable-rate homes, the average interest rate at the beginning was 2.58%, compared to 3.16% for fixed rate mortgages. In both cases, the rates were lower than those registered in August 2016.

 

Source: El Economista