However this Thursday, the government will sell that Congress voted in favor – and by a majority – of the agreement reached with the bank employers to alleviate the mortgage charge which more than a million vulnerable or at-risk households can benefit from, the truth is that many other holders of variable mortgages have had their attention on the decision of the B.C.
Therefore, the European supervisor has decided to once again raise the interest rates to 50 basis points, so that these, when used for refinancing operations, stand at 2.50%, while the deposit rate reaches 2% and the loan rate at 2.75%.
In short, here we are the highest level of rates since 2008a traumatic situation for all those mortgaged families with a variable, which will be triggered again.
This will make your mortgage more expensive
The rate hike announced by the European Central Bank will raise the quotes of the variable mortgages between 1,900 and 4,700 euros per year, an extra expense that will fully affect the Rescue and the consumption houses.
We’re talking about the fourth rate hike in the last six months, which represents a monthly increase between 160 and 390 euros per month32% more, in the installments of these loans.
In the real estate market, therefore, there is a moderation in the demand for home purchases and 24% of buyers have been forced to paralyze the process because they believe that the terms of the mortgage “have ceased to be attractive”, according to a recent report by Fotocasa .
With this fourth consecutive hike in the price of money, the ECB moderated the intensity of its monetary policy normalization, after the two hikes of 75 basis points undertaken in its meetings in October and September, after an initial hike of half a percentage point a July.
Rent, mission impossible
The housing problem in large cities will continue to be rooted also in 2023. With a market stressed by inflation and the consequent rise in interest rates to contain it, which induces large sections of the population to give up owning property, the situation of rentals is seems complicated.
The outlook for next year threatens turbulence: the supply of rental accommodation has decreased by up to 50% in two years and prices, as tenants and opportunity seekers will have noticed, have continued to rise. In Spain, the average rental price for a house of no less than 80 square meters and no more than 90 square meters went from an average 826 euros per month in 2021 to 877 in 2022.
As mortgage prices rise, the rental market will be characterized by increased demand and increasingly scarce supply. In large cities there is a high demand that exceeds the ability to generate supply, precisely due to these difficulties in accessing home ownership and the migration suffered by the main cities from other areas.
