The home mortgage firm soared 23.5% in July and the average interest fell to 3.17%

The average interest rate is the lowest since June 2023 and the percentage of fixed-rate mortgages (59%) reaches one-year highs

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The number of mortgages created on homes shot up 23.5% in July compared to the same month in 2023, reaching 36,260 loans, the highest number in a month of July since 2010, with an average interest rate lower than the previous month , according to data released this Friday by the National Institute of Statistics (INE).

Specifically, the average interest rate for mortgages constituted on homes reached 3.17% in July, compared to the 3.26% registered in June, registering its lowest rate since June 2023, when it also stood at 3. .17%.

With the year-on-year advance in July, the mortgage firm returns to positive rates after two consecutive months of declines.

The average amount of mortgages constituted on homes rose by 6.2% year-on-year in the seventh month of the year, to 151,944 euros, while the capital lent increased by 31.2%, to 5,509.4 million euros.

After the reduction in interest rates carried out by the European Central Bank (ECB) in view of the better inflation data and its reflection in the evolution of the Euribor, the average interest rate in July was 3.17% for mortgages constituted on homes, with an average term of 25 years.

The average interest rate for housing loans is six tenths lower than a year before (3.23%) and, with it, there have already been 16 consecutive months with rates above 3%.

41% of home mortgages were established in July at a variable rate, while 59% were at a fixed rate, the highest percentage since June 2023, when it exceeded 60%. The average interest rate at the beginning was 3.32% for fixed-rate mortgages and 2.99% for variable-rate home mortgages, thus falling below 3% for the first time since August last year.

MORTGAGES ON HOUSES RISE BY 15% COMPARED TO JUNE

In a month-on-month rate (July over June), mortgages on homes increased by 15%, while the capital lent increased by 19.6% and the average amount grew by 4%.

In the first seven months of the year, the number of mortgages to purchase a home has decreased by 1.1%, with a decrease in the capital lent of 1.4% and a decrease in the average amount of 0.3%.

CATALONIA AND ANDALUSIA, WHICH SIGN THE MOST HOUSING MORTGAGES

By autonomous community, those that registered the highest number of mortgages established on homes in July of this year were Catalonia (6,798), Andalusia (6,602) and Madrid (5,659).

Fifteen communities signed more mortgages on homes last July than in the same month of 2023, highlighting the year-on-year advances in Navarra (+63.3%), Cantabria (+52%), Galicia (+40.2%) and Asturias (+35.8%).

On the other hand, loans for home purchases fell in two autonomous communities: Aragón, with a year-on-year decrease of 12.9%, and the Balearic Islands, which registered a decrease of 5.5%.

THE TOTAL MORTGAGED PROPERTIES RISE BY 21.6%

According to data from the statistical agency, the number of mortgages on rural and urban properties (the latter include homes) shot up 21.6% in July compared to the same month in 2023, up to a total of 46,080 loans. .

The capital of mortgage loans granted increased by 25.8% in the seventh month of the year, up to 7,851 million euros, while the average amount of mortgages constituted on all properties increased by 3.5% year-on-year , with 170,388 euros.

MORTGAGES THAT CHANGE CONDITIONS RISE

Last July, a total of 10,227 mortgages changed their conditions, a figure 3.1% higher than the same month in 2023.

Taking into account the type of change in conditions, there were 10,148 novations (or modifications produced with the same financial institution), 24.7% more.

The number of operations that changed entity (subrogations to the creditor) was 387, 77.4% less than in July 2023.

For its part, in 129 mortgages the owner of the mortgaged asset changed (subrogations to the debtor), 73.7% less than a year before.

Of the 10,148 mortgages with changes in their conditions, 81.2% are due to changes in interest rates.