The number of mortgage in Spain grew by 41.2% in June, which is a post-pandemic record
How buyers changed their preferences in mortgage type in Spain
The number of mortgages to buy a home rose by 41.2% year-on-year in June to 37,961, showing the biggest increase since December 2019 and the highest figure since before the pandemic (January 2020). The variable interest rate is once again preferential to the fixed one.
The amount loaned grew by 49%, becoming on average 140,456 euros, which is the highest since February 2020, according to monthly mortgage data released by the National Institute of Statistics (INE).
In the first six months of the year, the number of mortgages to buy a property increased by 11.2% year-on-year, while the capital loaned increased by 12%.
In the first six months of the year, the number of mortgages to buy a property increased by 11.2% year-on-year, while the capital loaned increased by 12%.
The number of mortgages to buy a home rose by 41.2% year-on-year in June to 37,961
June began with a change in the preferences of those taking mortgages, from the fixed-rate mortgages that predominated between January and April, to variable-rate mortgages, which were more in demand in the mentioned month.
Thus, 38.8% of mortgages were taken in June at a fixed interest rate, which is the lowest number since February last year, while the amount of variable rate loans exceeded 60% for the second consecutive month.
By autonomous region, Andalusia was the region with the highest number of mortgages in June, with 7,853 registrations, followed by Madrid (7,372) and Catalonia (5,889).
Thus, 38.8% of mortgages were taken in June at a fixed interest rate, which is the lowest number since February last year, while the amount of variable rate loans exceeded 60% for the second consecutive month.
By autonomous region, Andalusia was the region with the highest number of mortgages in June, with 7,853 registrations, followed by Madrid (7,372) and Catalonia (5,889).
How buyers changed their preferences in mortgage type in Spain
Notaries and registrars did not have the usual activity last year
The year-on-year figure for mortgages is "the best since the impact of Covid-19 in our country, but it should be noted that such a high rise is due to the fact that we compare to June 2020, when the economic and social paralysis, caused by the state of alarm, still did not allow notaries and registrars to return to their usual activity", clarifies María Matos, Director of Studies and Spokesperson for Fotocasa.
"The closing of operations in June exceeds the barrier of 35,000 mortgages signed for the third time this year. We have once again reached a new record with the best figure since 2011, only surpassed in January 2020 (40,217 mortgages). This is positive news that makes it clear that the impact of the pandemic has boosted the signing of mortgages, raising transactions to figures that we have not seen for a decade", continues Matos.
"The closing of operations in June exceeds the barrier of 35,000 mortgages signed for the third time this year. We have once again reached a new record with the best figure since 2011, only surpassed in January 2020 (40,217 mortgages). This is positive news that makes it clear that the impact of the pandemic has boosted the signing of mortgages, raising transactions to figures that we have not seen for a decade", continues Matos.
Less uncertainty
The expert interprets this as a sign of less uncertainty: "the sector has recovered at a very good pace from the paralysis caused by the pandemic. These are the best figures since the recovery from the economic crisis of 2008. "The current good conditions of lower interest rates are causing many small savers to buy homes".
Juan Villén, head of idealista/mortgages, says that "the figure for mortgages registered in June is a continuation of the trend we have seen in previous months, with a very high volume of new mortgages, supported by the good momentum of the property market and mortgage changes encouraged by low interest rates". Rates that are once again at historic lows, Villén points out, "are likely to remain so for the rest of the year".
Source:https://www.expansion.com/economia/2021/08/27/61289683e5fdeafe648b45c4.html
Juan Villén, head of idealista/mortgages, says that "the figure for mortgages registered in June is a continuation of the trend we have seen in previous months, with a very high volume of new mortgages, supported by the good momentum of the property market and mortgage changes encouraged by low interest rates". Rates that are once again at historic lows, Villén points out, "are likely to remain so for the rest of the year".
Source:https://www.expansion.com/economia/2021/08/27/61289683e5fdeafe648b45c4.html