The mortgage market is reactivating. Although the aggregated data until September shows a slight decrease in the number of loans compared to the same period in 2023, in the last quarter there has been a significant year-on-year increase of 22.3% , according to the latest report published by the National Institute of Statistics (INE).
In particular, from July to September, the number of mortgages on homes registered in the property registers in the province of Albacete reached 707 compared to the 578 formalized in the same quarter of the year before that.
The best data in the third quarter of 2024 was recorded in the month of September, with 244 loans established. July was next, with 233, and in August 230 were recorded.
A year earlier, these figures were not reached in any of the months of the analyzed period, which was led by July with 200 mortgages, followed by August, with 197 loans, and in the September, with 181.
Regarding the formal capital, the set of loans recorded in the property records in the third quarter of this year was 72.23 million euros.
In a situation of a general increase in housing prices and in line with the increase in mortgage signings, this sector has also grown compared to the previous year and even in a higher percentage than the number of loans because in the previous year, the total amount. It was 54.81 million euros, which means a year-on-year increase of 31.79%.
Before the month, July was the one with the highest level in home mortgages, with a total of 26.61 million euros. In second place is September, with 23.56, and in August the figure was 22.06.
However, despite the good results of the last quarter, reading this year’s data collected by INE statistics shows a decrease in the number of loans compared to last year as 1,865 loans were established from January to September 2024 and in the first nine months of 2023 there were 1,906.
This represents a slight year-on-year fall of 2.15% in the number of mortgages, although all indications are that the decline can be traced back to the end of the year as it appears that ‘ home buying market is picking up, driven by the fall in the Euribor index for the calculation of most loans in Spain.
Mortgage on homes is one of the chapters collected by INE statistics, which includes information on the total number of loans, distinguishing between rural and urban properties, the latter giving its – including homes, plots of land and other buildings. In total, in the last quarter, 1,103 loans were established in the Albacete region. In the global calculation, the same upward trend is also seen as 858 mortgages were registered from July to September 2023, so the increase was 28.55%.
EURIBOR AND MORE. The recent fall in the Euribor, in parallel with the general increase in rents, encourages the purchase of properties, which is reflected in different variables that measure the pulse of the real estate sector, including an increase of over 22%. registered in the home mortgage company in the last quarter of the year compared to the previous year.
For Pedro Pastor, responsible for Business Development and Commercial Change at Globalcaja, the positive fall that the Euribor is suffering is behind the increase in house purchases as the monthly installments have become cheaper, giving for example to is the November average of this index. to 2.5% last month it closed at 2.69%. At the beginning of the year, the markup was around 3.5%.
We must add to this the “fantastic” rise in house rental prices “in a property market with little supply and high demand”. «Renting makes sense as long as it is lower than the mortgage payment. But today it is more expensive to pay rent than a loan. So, it is logical that people will be encouraged to buy,” he said.
Likewise, he said that access to rent has also become more difficult, with more requirements being demanded from tenants at the moment, which also contributes to citizens opting for the purchase market. despite the fact that the cost has also increased. “The new promotions are for sale. “There is no stock,” he said.
For the rest of the year and looking forward to 2025, Pastor believed that the trend will continue: «House prices will remain high and maybe grow a little, although not at the same level as the -year. And interest rates will continue to fall gradually, although not as much as they have done so far. But there is going to be a very lively mortgage market.
2024-11-30 10:01:00
#Home #mortgage #underwriting #rises
## Mortgage Market Shows Signs of Rejuvenation: An Expert Interview
**World-Today-News.com** sits down with industry expert **Javier Jimenez**, Senior Analyst at the National Real estate Institute, to discuss the recent uptick in the Albacete mortgage market.
**WTN:** The latest INE report shows a 22.3% surge in mortgage signings in Albacete during the third quarter of 2024. While the year-to-date figures are still slightly down compared to 2023, this recent trend is certainly encouraging. what factors are driving this rebound in the market?
**Jimenez:** several factors are converging to invigorate the Albacete mortgage market. Firstly, we’re witnessing a gradual stabilization of interest rates. While they haven’t dropped significantly, the lack of major fluctuations is giving potential homeowners more confidence to take the plunge.
Secondly, we’re seeing increased consumer confidence fueled by a stable job market and a general feeling of economic recovery. People are more willing to make long-term financial commitments like buying a home.
the consistent rise in housing prices, while daunting for some, actually incentivizes others to enter the market sooner rather than later. The fear of missing out, coupled with the desire to leverage low interest rates, is pushing buyers to act now.
**WTN:** The report highlights a remarkable jump in formal capital, with a 31.79% year-on-year increase. Does this suggest that mortgages are becoming larger, or are more people simply buying more expensive properties?
**jimenez:** It’s likely a combination of both. With interest rates relatively stable, buyers are able to secure larger mortgages without necessarily being burdened by significantly higher monthly payments. Coupled with rising property prices, this translates into a larger overall loan amount.
**WTN:** September particularly stood out with 244 loans established – a substantial increase from the same month last year.
**Jimenez:** September is often a busy month for the real estate market as it signifies the end of summer holidays and the start of a new school year. This year’s figures suggest that the typical seasonal surge was particularly strong,possibly amplified by the factors we discussed earlier.
**WTN:** Looking ahead,what are your expectations for the Albacete mortgage market in the coming months?
**Jimenez:** Based on current trends,I anticipate continued growth in the Albacete mortgage market,at least in the short to medium term. Provided that interest rates remain relatively stable and consumer confidence holds strong, I expect to see a healthy number of mortgage signings in the coming months.
Though, it’s crucial to remember that the market is sensitive to external factors. Fluctuations in interest rates, changes in economic conditions, or unexpected events can all impact the trajectory of the mortgage market.
**WTN:** Thank you for your insightful analysis, Mr. Jimenez.
