June 16, 2024

Housing Market in Spain: Mortgage Grants Drop, Interest Rates Continue to Rise Amid 12-Month Slump

1 min read
Mortgages in Spain Experience 10% Drop and Highest Interest Rates in Nearly 10 Years at Start of Year

In January 2024, the mortgage firm in Spain recorded a 10% drop compared to January 2023, with a total of 33,128 loans granted. Despite this drop, the average interest rate for home mortgages continued to rise and is now at its highest level since December 2014.

The year-on-year decline in January marks the 12th consecutive month of negative rates, although it was not as pronounced as the previous month. The average amount of mortgages on homes decreased by 2.7% year-on-year in January to €138,149, while the capital lent decreased by 12.7% to €4,576.5 million euros.

According to Beatriz Toribio, general secretary of the Association of Builders Promoters of Spain, the overall trend in mortgage financing indicates a moderation. This trend is expected to continue in the coming months as experts anticipate that the European Central Bank will lower interest rates.

In terms of monthly changes, home mortgages increased by nearly 33% in January compared to December 2024, while capital loans increased by around 30.7%. The autonomous communities with the most mortgages on homes were Madrid, Andalusia, and Catalonia. However, some regions experienced a decrease in home mortgages compared to the previous year

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.