May 21, 2024 2:01 pm
Spain | Mortgage rates decrease by 10% at the start of the year, reaching nearly decade-high interest levels

Spain’s mortgage market experienced a 10% drop in January 2024 compared to the same month in 2023, with a total of 33,128 loans granted, according to data from the National Institute of Statistics (INE) published this Tuesday. Despite this decline, the average interest rate on mortgages for homes continued to rise and is now at its highest point since December 2014.

The year-on-year drop in January means that the home mortgage market has now experienced 12 consecutive months of negative rates, although this decline is less pronounced than the previous month. The average amount of mortgages for homes decreased by 2.7% year-on-year in January, reaching €138,149 euros, while the capital lent decreased by 12.7% to €4,576.5 million euros.

The rate policy adopted by the European Central Bank (ECB) to combat inflation and the evolution of Euribor have contributed to the current average interest rate of 3.46%, with an average term of 24 years. In January, about 42% of mortgages in Spain were taken out at a variable rate, while 58.2% were fixed-rate mortgages.

Interestingly, home mortgages increased by close to 33% from December 2023 to January 2024, while the loaned capital increased by around 30.7%. The general secretary of the Association of Builders Promoters of Spain has noted that there has been a trend towards moderation in mortgage financing due to rising financing costs.

In terms of inter-monthly rates, home mortgages increased significantly from December 2023 to January 2024 in Madrid, Andalusia and Catalonia – but decreased in Asturias and Navarra among others regions across Spain saw fewer mortgages on homes than in the same period in

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