The average interest rate on housing mortgages fell in November after nine months of consecutive increases, according to data from the INE published this Thursday. The average rate on loans was 3.27%, below the 3.32% of the previous month, which marked a maximum since 2015.
With the rise in Euribor last year, pushed by the ECB’s rate increases to 4.50%, the average rate rose little by little throughout the year. From 2.65% in January it jumped to almost 3% in March, to 3.25% in August and to the top of 3.32% in October. At that moment the central entity paused the rate increase and since then there have been no more movements, with the expectation that the first reduction will arrive in the summer.
Where there is no big news is in the market in general. 19% fewer mortgages are requested than last year, with 32,645. It is a similar decrease that has been seen since March, with a drop of up to 30% in September. With the increase in rates, mortgages become more expensive and it is not so cost-effective to apply for a loan.
In La Rioja in November there were 53% fewer mortgages (145 in total), where the figure fell the most, followed by 45% in Extremadura (371 properties) and 39% in the Balearic Islands (635 homes). In Catalonia they fell by 27% (to 5,140) and in Madrid by 13% (6,364), below the average. Andalusia, where the most mortgages were granted, with 6,906, sees a drop of 20%. They only increased by 41% in Castilla-La Mancha, to 1,656, and 8% in Cantabria, to 511.
The average amount requested goes in the opposite direction, with an increase to 145,894 euros, 4% more than last month. That is, rates fell and the requested capital grew. If compared to the same month last year, there is a decrease of 0.5%.
