Economy / Finance.- 157,400 new mortgages are constituted until April, 11.3% more, for a value of 21,738 million

The total number of mortgages constituted in the first four months amounted to 157,382, which represents an increase of 11.3% compared to the same period of the previous year





The total number of mortgages constituted in the first four months amounted to 157,382, which represents an increase of 11.3% compared to the same period of the previous year, with an added value of 21,738 million euros, 8.5% higher than the total amount of the comparable months of 2017.

This follows from the quarterly statistical bulletin of the Spanish Mortgage Association (AHE), which also points out that the average amount of the mortgage loan stood at 120,481 euros, that is, a rebound of 5.3% year-on-year. In addition, it is observed that the residential market continues to advance in the upward path, registering the value of appraisal of the houses an average revaluation of 2.7%.

“This greater increase with respect to the price of housing reflects, in part, the recovery of access to financing, especially for those groups that have a more stable and solvent economic capacity,” the document said.

The effective rate of contracting was 1.955% in the first quarter of 2018, slightly below that observed during the first three months of the previous year. For its part, the term of financing of the new loans continued to rise, up to 23.8 years, compared to 23.3 years of a year before or of 23.5 years of the close of the immediately preceding quarter- consolidate payday loans helpful resources.

However, the “favorable” behavior of these variables has not translated into a reduction in the mortgage rate, which rose from the estimated 511 euros in the first quarter of 2017, to 528 euros in the first three months of the current year. , which evidences “the incidence that has had the volume of principal that on average has been formalized”.


Low interest rates


During 2018, the policy of exceptionally low rates has continued, as a result of unconventional measures taken by the European Central Bank (ECB). The latest monetary policy decisions revolve around keeping the eurozone rates unchanged, at least until the summer of 2019, or until the economies of the area reach price stability.

The interest rates applied to the main financing operations and the permanent credit and deposit facility are at 0%, 0.25% and -0.4%, respectively, since March 2016.

“In tune with monetary policy, the reference rates of the mortgage market remain at levels clearly lower than those that had been recorded in the glorious era,” stresses the AHE in its report.

In fact, the Mortgage Loan Reference Index (IRPF) applicable to free home loans stood at 1,892% in May 2018, 0.013 percentage points less than in April 2018. On the other hand, the Euribor, although It remains negative, closed last May at -0.188%, two tenths above the index of the previous month.




Since 2016, loans whose initial rate remains fixed for a period exceeding one year are gaining a share, to the detriment of variable rate loans- Home Page. “This behavior may be in response to an eventual rise in interest rates in the short or medium term,” the AHE said in its report.

The loans formalized with a variable interest rate, that is, whose initial rate remains fixed for a term less than or equal to one year, represented 37.5% of the total of new loans in May, which meant a fall of 5, 7 percentage points compared to the same month of 2017.

Thus, loans whose initial rate remains fixed for a period exceeding one year, but less than ten years, accounted for 32.3%, compared to 30.1% a year ago, while the new mortgage contract subscribed With a fixed initial rate for a period of more than ten years, it was 32.3% compared to 26.7% in May of a year earlier.

The report also points out that the renegotiations of housing loans did not show significant variations, accounting for 5.7% of the total of new hires. “In any case, the weight of the renegotiations of this last month does contrast significantly compared to other years, such as May 2016 (23%) or May 2015 (14.8%),” he says.


Credit to the activities of the resident private sector contracted by 3.3% in the first quarter of 2018, with the fall for deposit institutions (-3.5%), while credit institutions were somewhat more marked. its balance recovered at a rate of 7.1%.

For its part, the loan to finance the acquisition and rehabilitation of housing stood at 519,134 million euros, a fall of 2.3% year-on-year. In this sense, while the current credit for the purchase of housing, which represented 96.4% of the total, registered a decrease of 2.4%, the credit for housing rehabilitation presented a positive variation for the second quarter. consecutive.

“Within the real estate loan, which also includes the detail of the construction sector and real estate activities, we can see how the household sector is becoming increasingly important compared to the other two segments, the latter marked by the divestment strategy of brick executed by the credit entities, “says the AHE in the document.

Thus, the credit to real estate activities, which lost weight over the total real estate credit, to stand at 15.5%, showed a notable year-on-year decrease of 14.7%, due to the adjustment made by the banking within the framework of your sanitation process.

“During the first quarter of the year, the balance sheets of Spanish banks continued to show signs of improvement, as a result of both the good performance of the economy and the active management of the entities in terms of their portfolios. of problematic assets, “he adds.

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