New Mortgage Completions continue to fall26/09/2012
The number of new mortgages contracted on homes in July of this year totalled 24,291, which is a drop of 17.5% compared to the same month of 2011, according to figures released on Friday by the National Statistics Institute. Including the drop in July, the number of mortgaged homes, have now accumulated 27 consecutive months of declines.
The July decrease was more moderate than that of June, when mortgaged homes were down by 25.2%. In any case, the total number of mortgages on homes in July was the lowest for this month within the entire comparable historical series, which began in 2003, and the third worst figure of the series in any month after April of this year (21,498 mortgaged homes), and October of last year (22,193). In the first seven months of the year, mortgages on homes fell by 35.3% compared to the same period of 2011, with a decrease of 41.3% in borrowed capital and of 9.2% in the average mortgage value.
The average value of a home mortgage in July stood at 98,892 euros, 10.5% less than the same month of 2011, while borrowed capital dropped by 26.2% to 2,402.1 million euros. Month-on-month (July over June), mortgages fell by 0.1% compared to the 6.5% decline experienced in June in monthly values. According to data from the statistical agency,during the seventh month of the year 42,089 mortgages were constituted on rustic and urban properties (dwellings are included within the latter), which represents a decrease of 10% compared to July 2011.
The capital of mortgages granted fell by 27.4% to 4,173.4 million euros, while the average value of mortgages constituted recorded in the land registries amounted to 99,157 euros, 19.4% less than in July 2011.
Banks were the institutions that granted the greatest number of mortgages in July, with 74.3% of the total, followed by other financial institutions (15.5%) and savings banks (10.2%). Regarding the capital borrowed, banks granted 71.9% of the total, savings bank awarded 11.1%, and other financial institutions, 17%.
The average interest rate on mortgage loans in July reached 4.27%, 0.2% less than the same month of 2011, while the average interest rate in the case of dwellings was 4.24%, an increase of 1.8%. By institution, the average interest rate in the savings banks was 4.34% and an average term of 22 years, while in the banks it was 4.38%, with an average term of 21 years. 92.1% of the mortgages constituted in July used a variable rate, compared with 7.9% which used a fixed rate, with the Euribor being the reference rate most commonly used, namely in 85.4% of new contracts.
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