Fixed-rate mortgages are at a one-year low (66.8%) after the rise in interest rates

The number of mortgages constituted on homes increased by 13.5% last October compared to the same month in 2021, to a total of 41,022 loans, the highest figure in an October since 2009, when more than 52,000 mortgages were signed, according to the data released this Thursday by the National Institute of Statistics (INE).

With the year-on-year rise in October, more than nine points higher than that experienced in September, the home mortgage firm has chained 20 months of consecutive year-on-year rises.

The average amount of mortgages on homes rose 8.4% year-on-year in the tenth month of the year, to 149,730 euros, while the capital lent grew 23%, to 6,142.2 million euros.

By autonomous communities, those that registered the highest number of mortgages constituted on homes in October 2022 were Andalusia (8,116), Madrid (7,984) and Catalonia (6,692).

Likewise, the regions in which more capital was lent for the constitution of home mortgages were Madrid (1,762.8 million euros), Catalonia (1,121.2 million) and Andalusia (1,010.4 million).

In thirteen communities, more home mortgages were signed in October than in the same month of 2021 and four registered year-on-year decreases: Castilla-La Mancha (-28.6%), Navarra (-5.7%), Murcia (-3, 4%) and Castilla y León (-1.6%).

The greatest increases, on the other hand, occurred in the Canary Islands (46.3%), Aragón (38.3%) and the Basque Country (33.2%), while the most moderate advances were experienced by Galicia (0.7%) and the Valencian Community (1.6%).

In the first ten months of the year the number of mortgages to buy a home has increased by 12.9%, while the capital lent has risen by 20.2%.

MORTGAGES ON FIXED-RATE HOUSES, IN MINIMUM ONE YEAR

On a month-on-month basis (October over September), home mortgages fell 7%, while capital lent fell 2.8%. In both cases they are their smallest setbacks in a month of October since 2020.

In October, the average interest rate for all mortgage loans stood at 2.66%, with an average term of 23 years. In the case of homes, the average interest was 2.50%, below the 2.54% of a year earlier, with an average term of 24 years.

33.2% of mortgages on homes were established last October at a variable rate, while 66.8% were signed at a fixed rate, the lowest percentage since September 2021. The average interest rate at the beginning it was 2.03% for variable-rate home mortgages and 2.74% in the case of fixed-rate ones.

THE TOTAL OF MORTGAGED PROPERTIES RISES 10%

According to data from the statistical agency, the number of mortgages on rural and urban properties (within the latter include homes) increased by 10.3% in October 2022 compared to the same month in 2021, up to a total of 53,809. loans.

The capital of the mortgage loans granted increased by 23.3% in the tenth month of the year, to exceed 8,796.9 million euros, while the average amount of the mortgages constituted on the total number of properties rose by 11.8 % and added 163,485 euros.

THE MORTGAGES THAT CHANGE THE CONDITIONS LOWER

Last October, a total of 10,198 mortgages changed their conditions, a figure 50.9% lower than that of the same month of 2021.

Considering the type of change in the conditions, there were 8,401 novations (or modifications produced with the same financial entity), with an annual decrease of 51.8%.

The number of operations that changed entities (subrogations to the creditor) was 1,405, 44.2% less than in October 2021. For its part, in 392 mortgages the owner of the mortgaged asset changed (subrogations to the debtor), 53 % less than a year earlier.

Of the 10,198 mortgages with changes in their conditions, 35.3% are due to changes in interest rates. After the change in conditions, the percentage of fixed interest mortgages increased from 24.2% to 53.3%, while that of variable interest mortgages decreased from 75% to 44.9%.

The Euribor is the rate to which the highest percentage of variable-rate mortgages refer, both before the change (69.3%) and after (42.2%).

After the modification of conditions, the average interest on loans on fixed-rate mortgages fell one point and that of variable-rate mortgages dropped four tenths.