The improvement that the mortgage market has been experiencing throughout the year is confirmed to the point that banks are increasing this loan portfolio for the first time in 10 years.
Specifically, and according to data at the end of November, entities obtain 514,677 million real estate loans. This volume represents around 1% more than at the end of December 2020, which implies that the new mortgage production beats the cancellations, which has not happened since 2011. Without a doubt, the impulse of the real estate market after the worst moments of the pandemic and the greater savings of users caused by the confinements are factors that have influenced the increase in mortgages. But the key is in the permanence of the low interest rates that allow banks to offer loans at prices never seen before. In fact, the average interest at which all entities operating in our country sell mortgages stood at 1.56% at the end of November, the lowest price since the Bank of Spain compiled the data. Fortunately, the progressive reduction in mortgage rates is not a phenomenon fueled by a bubble in the real estate sector, but by the high demand for home sales. In addition, the greater implementation of fixed rates offers more security than in the past.
The mortgage portfolio increases for the first time in ten years, confirming the recovery of the banking sector
With everything, the recent increases in delinquency in our country should lead entities to be scrupulous in risk control. Only in this way, mortgages will continue to be that key pillar on which banks must continue to rely to confirm their recovery in a context that appears more favorable due to the progressive normalization of the ECB’s monetary policy.
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