SANTA CRUZ DE TENERIFE/MADRID, 30 Aug. (EUROPA PRESS) –
The Canary Islands represent the autonomous community with the most significant decline in mortgages on residential properties in June, experiencing a drop of 26.2% compared to the same month last year, as per data released this Friday by the National Institute of Statistics (INE).
On a national scale, the number of mortgages secured on homes decreased by 5.5% in June relative to the same month in 2023, totalling 31,526 loans, with an average interest rate slightly higher than in the previous month.
Specifically, the average interest rate for home mortgages rose to 3.26% in June, compared to 3.25% in May. Both rates are not only the lowest recorded since the beginning of 2024, but one must look back to August and September 2023 to find comparable figures.
With the year-on-year dip in June, the issuance of mortgages on residential properties has now dropped for two consecutive months, following an 18.2% decline noted in May.
The average value of mortgages on homes increased by 1.9% year-on-year in the sixth month of the year, reaching 146,117 euros, while the total capital loaned declined by 3.7%, totalling 4.606 billion euros.
In line with the interest rate measures enacted by the European Central Bank (ECB) to address inflation and the changes in the Euribor, the average interest rate stood at 3.26% for home loans, with an average duration of 25 years.
The average interest rate for home loans is nine-tenths higher than the previous year (3.17%), marking the 15th consecutive month where rates have exceeded 3%.
In June, 42.6% of home mortgages were issued at variable rates, while 57.4% were on fixed rates, the highest proportion since January. The average initial interest rate was 3.06% for variable rate home loans and 3.44% for fixed rate mortgages.
MORTGAGES ON HOMES INCREASE BY 14.9% COMPARED TO MAY
Month-to-month (June compared to May), home mortgages rose by 14.9%, with the capital loaned increasing by 18.7% and the average amount grown by 3.3%.
In the first half of the year, the number of mortgages secured for home purchases decreased by 4.7%, alongside a 6.2% drop in the loaned capital and a 1.6% reduction in the average amount.
ANDALUSIA AND CATALONIA RECORD THE HIGHEST MORTGAGE SIGNINGS
Among the autonomous communities, the regions that recorded the highest number of home mortgages in June of this year were Andalusia (6,789), Catalonia (5,542), and Madrid (5,436).
Four communities signed more home mortgages last June than during the same month in 2023: Asturias (+6.8%), Navarra (+5.2%), Catalonia (+2.3%), and Castilla-La Mancha (+2%).
Conversely, loans for home acquisitions fell in thirteen autonomous communities, with significant year-on-year declines noted in the Canary Islands (-26.2%), the Basque Country (-23.3%), the Balearic Islands (-22.7%), and Aragon (-20.6%), all of which experienced reductions of over 20%.
TOTAL NUMBER OF MORTGAGED PROPERTIES DECLINES BY 6.8%
According to data from the statistical agency, the count of mortgages on both rural and urban properties (the latter including homes) decreased by 6.8% in June compared to the same month in 2023, amounting to a total of 40,324 loans.
The total capital of mortgage loans granted fell by 8.3% during the sixth month of the year to 6.644 billion euros, while the average amount of mortgages established on all types of properties reduced by 1.7% year-on-year, to 164,778 euros.
MORTGAGES WITH CHANGING TERMS ARE ON THE DECLINE
Last June, a total of 9,998 mortgages underwent changes in their terms, a figure 9% lower than that recorded in the same month in 2023.
In regard to the type of change in conditions, there were 9,500 novations (or alterations processed with the same lending institution), an increase of 11.9%.
The number of transactions that switched lenders (subrogations to the creditor) amounted to 378, representing a decrease of 81.1% compared to June 2023.
In 120 mortgages, the owner of the mortgaged property changed (subrogations to the debtor), a reduction of 75.9% from a year ago.
Of the 9,998 mortgages that experienced changes in conditions, 77.8% were due to adjustments in interest rates.
