Increasing number of new mortgages and record low interest rates

The mortgage market has shown a strong recovery during the first six months of the year. The number of new signed mortgages rose by eleven percent until June and the interest rate is at the same time right now the lowest ever historically. This according to a newsletter from the house portal Idealista this week, based on the latest report from INE, the Spanish National Statistics Institute.

 

During the first semester of the year, almost 38,000 new house mortgages were signed. That is 7.8 percent more than in May and 41.2 percent more compared to the same month last year. This is alså the best figure since January 2020, before the pandemic broke out, and the fourth month in a row that showed a recovery compared to the corresponding month in 2020. On average, this means an increase of 11.2 percent for the first six months of the year.

 

The recovery in the mortgage market is accompanied by a continued decline in the average mortgage rate, which fell to 2.28 per cent in June. This is actually the lowest figure ever, together with the one noted in January last year, and a sign of the strong competition that prevails in the banking sector and how it responds by reducing costs in the hunt for new customers.

 

According to Idealista's mortgage expert Juan Villén, June's figures are a continuation of the trend that has been going on for a few months, with a large number of new mortgages that are also promoted by good times in the real estate market and the low interest rates.

 

INE's statistics also show that the average amount for mortgages increased by 5.5 per cent in June and reached 140,456 euros.

 

The Spanish region that recorded the largest number of new mortgages in June was Andalusia, followed by Madrid and Catalonia. The list of regions where the banks lent the most money was topped by Madrid, followed by Andalusia and Catalonia.