The interest rates on new credit granting operations for the purchase of housing subscribed by banks stood at 3.49% in March, according to data recently published by the Bank of Spain.
This reference is the lowest since January 2023, mortgages were subscribed on average at 3.25%. Since that moment, the percentage had only increased, reaching around 4%, in line with the increases in interest rates.
The interests reported by the Bank of Spain are below the Euribor. Institution sources indicate that their reference is a weighted average rate that does not include commissions or additional expenses. They do, however, show the banking sector’s trend in longer-term lending to individuals.
The Euribor closed April at 3.7%, a percentage very similar to that of the previous month. After reaching 4.1% in October last year, its trend is now downward, amid expectations that the ECB will begin to ease its monetary policy starting in June.
Data from the Bank of Spain show that, between January and March, banks granted mortgages for 14,358 million euros, a volume 9% lower than the same period of the previous year.
The total granting of bank credit in the first quarter of the year stood at 59,952 million euros, 6.8% less than at the start of 2023.
Not only has it fallen in housing, but also in that associated with credit cards, which usually covers specific overdrafts and which has gone from 35,185 million to 32,363 million.
The only category of credit in which an upward trend can be seen is consumer credit. Until March, banks granted 8,876 million euros in loans of this type, 3.5% more.
