The mortgage company records another negative data in June

The number of mortgages established on homes fell by 5.5% in June compared to the same month in 2023, reaching a total of 31,526 loans, in an evolution affected by a confluence of different factors such as the fall in rates, the rise in real estate prices. housing and the increase in buyers who do not request a mortgage, according to data published this Friday by the National Institute of Statistics (INE).

With the year-over-year decline in June, the home mortgage company has declined for two consecutive months following the 18.2% decline in May.

The number of mortgages on homes registered in property registers has decreased in 14 of the last 16 months: they only increased in the interannual rate in April due to seasonality (28% more ) and in February (3.8% more).

Mortgages signed in June have an average interest rate slightly higher than the previous month. In particular, the average interest rate for mortgages originated on homes was 3.26%, compared to the 3.25% recorded in May (however, both rates are the lowest since the beginning of 2024) . The average interest rate for housing loans is nine tenths higher than a year ago (3.17%) and, therefore, there have now been 15 consecutive months with rates above 3%.

The average number of mortgages established on homes rose by 1.9% year on year in June, to 146,117 euros, while the total amount of loan capital decreased by 3.7%, to 4,606 million euros.

42.6% of home mortgages were established in June at a variable rate, while 57.4% were at a fixed rate, the highest percentage since last January.

Recovery in the second half of the year

The real estate portals Idealista, Fotocasa and Pisos.com predict an increase in mortgage loans for the second half of the year.

For the Idealista portal, the decrease in mortgage signing is due to lower activity in bank changes, which was “very strong” in 2023 due to the increase in interest rates, and due to lower activity in mortgage sale signing . However, it is expected that the data for July and August will show “more positive” results, after a greater movement of signature activity in those months, said the director of Idealista / Hipotecas, Juan Villén.

For its part, Fotocasa has pointed out how the first reduction in interest rates at the beginning of the month “has boosted the optimism and confidence of customers” and believes that the data shows “a certain trend of “returning to normal” after years of “surge” of activity.

The director of research at Fotocasa, María Matos, has said that the devaluation of interest rates by the European Central Bank is reducing the conditions for accessing mortgages, causing purchase demand and with the loan demand returning to the same extent in the second half of the year.

For its part, Pisos.com says that mortgage loans continue in the “same irregular trend”, but it expects the market to “recover activity” in the second half of the year . The portal points out that the coming months will be marked by a relaxation in rates, “which is already translating into better mortgage conditions, which will certainly increase activity,” according to Director of Knowledge at Pisos.com, Ferran Font.