29 July 2015 – El Economista
According to the National Institute of Statistics (INE), the number of mortgages granted over homes recorded in the property registers amounted to 19,732 in May 2015, up by 10.9% from the same month in 2014. This data is sourced from public deeds signed in previous months.
With the YoY increase to May, residential mortgages recorded twelve consecutive months of two digit increases. Nevertheless, the rise in May was ten points lower than the one seen in April, when the number of residential mortgages increased by 21.4%.
The average size of a residential mortgage amounted to €103,922 during the fifth month of the year, up by 4.4% from the same month in 2014. Meanwhile, the total amount of capital loaned increased by 15.8% in YoY terms to exceed €2,050 million.
In monthly terms (May versus April), the number of mortgages increased by 4.6%, the lowest rise in five years, whilst the volume of capital loaned grew by 8%, compared with an increase of 14% one year ago.
During the first five months of the year, the number of residential mortgages signed increased by 20.1% with respect to the same period in 2014, with a 24% increase in the total amount of capital loaned and a 3.3% rise in the average mortgage amount.
Andalucía leads the ranking
By region, the autonomous communities that recorded the highest number of new residential mortgages in May were: Andalucía (3,717), Madrid (3,378) and Cataluña (3,085).
During the fifth month of the year, the regions that recorded the highest YoY variations in the number of new residential mortgages were: La Rioja (+43.4%), Navarra (+31.8%) and Galicia (+26.8%).
Meanwhile, the regions that loaned the most capital for the constitution of mortgages were: Madrid (€496.3 million), Cataluña (€371.4 million) and Andalucía (€323.4 million).
Mortgages increase over all properties
According to data from the statistical body, 29,712 mortgages were constituted over rural and urban properties (including homes) during the fifth month of the year, which represents an increase of 7.3% with respect to May 2014.
The capital of the mortgage loans granted increased by 15.1% with respect to the same month in 2014, to €3,736.8 million, to the extent that the average amount of the mortgages constituted over all properties amounted to €125,802, up 7.3% from May 2014.
The average interest rate for residential mortgages was 3.40% in May, compared with 3.82% a year earlier, whilst the average interest rate for all properties was 3.38%, with an average term of 21 years.
Mainly variable interest rate mortgages
Finally, 92.8% of the mortgages granted in May had variable interest rates, compared with 7.2% that had fixed rates. Euribor was the most commonly used reference rate, and featured in 92.2% of the new contracts signed. (…).
Original story: El Economista
Translation: Carmel Drake
Source:: AURA Real Estate Experts