Title: Number of Mortgages for Housing Falls by 25.8% in Extremadura in April
MADRID/MERIDA, June 22 (EUROPA PRESS) – The number of mortgages constituted for housing has decreased by 25.8 percent in Extremadura in the month of April compared to the same month in 2022, totaling 471 loans, according to data released by the National Institute of Statistics (INE) on Thursday.
In Extremadura, a capital of over 41.1 million euros was lent for these mortgages in April, representing a 31 percent decrease compared to 2022.
Across the country, the number of mortgages constituted on homes decreased by 18.3 percent in April compared to the same month in 2022, reaching a total of 27,053 loans. This is the lowest figure since December 2020. The decline in April marks three consecutive months of negative rates for home mortgage firms, following a 2 percent drop in February and a 15.7 percent drop in March.
The average amount of mortgages constituted on homes has fallen by 4.1 percent year-on-year in April, amounting to 136,945 euros. The capital lent has also decreased by 21.6 percent, totaling 3,704.7 million euros.
Andalucía (5,473), Cataluña (4,477), and Madrid (4,373) were the autonomous communities with the highest number of mortgages constituted on homes in April. Madrid (882 million euros), Catalonia (697.8 million euros), and Andalusia (648.1 million euros) were the regions where the most capital was lent for the constitution of home mortgages.
Only one community, Aragón, experienced an increase in home mortgages signed in April compared to the same month in 2022, with a growth rate of 31.5 percent. The rest of the regions saw interannual decreases, particularly La Rioja (-30.9%), the Balearic Islands (-28.4%), and Catalonia (-27%).
In April, home mortgages saw a significant monthly decline of 25.2 percent, while borrowed capital fell by 28.2 percent. These figures represent the largest decreases in a month of April in at least five years.
During the first quarter of 2023, home mortgage loans decreased by 8.4 percent, with borrowed principal down by 9 percent and median principal down by 0.7 percent.
The average interest rate for all mortgage loans stood at 3.43 percent in April, the highest figure since May 2015, with an average term of 23 years. For housing mortgages, the average interest rate in April was 3.09 percent, higher than the 1.77 percent recorded a year before and the highest since April 2017. The average term for housing mortgages is 24 years.
In April, 38.7 percent of mortgages on homes were constituted at a variable rate, while 61.3 percent were signed at a fixed rate. This is the lowest percentage of fixed-rate mortgages since April 2021 and 14.1 points lower than the peak of 75.4 percent in July 2022. The average interest rate at the beginning was 2.78 percent for variable-rate home mortgages and 3.29 percent for fixed-rate mortgages.
The total number of mortgages on rural and urban properties, including homes, decreased by 18.7 percent in April compared to the same month in 2022, totaling 35,621 loans. The capital of the mortgage loans granted decreased by 19.6 percent, amounting to 5,639.5 million euros. The average amount of mortgages constituted on the total number of properties decreased by 1.1 percent, reaching 158,321 euros.
In April, a total of 9,907 mortgages changed their conditions, a figure 23.1 percent lower than the same month in 2022. The majority of changes were novations (7,851), followed by changes in entities (1,699) and changes in the owner of the mortgaged asset (357). Changes in interest rates accounted for 32.3 percent of the total changes, with an increase in the percentage of fixed-interest mortgages from 17.7 percent to 39.9 percent, and a decrease in variable-interest mortgages from 81.1 percent to
How does the significant drop of 25.8% in the number of mortgages for housing in Extremadura during April impact the region’s housing market?
Number of Mortgages for Housing in Extremadura Drops by 25.8% in April
