The average mortgage becomes more expensive up to 73,000 euros before the ‘rally’ of the Euribor
The recipe of the European Central Bank (ECB) to short the rise in inflation has caused a ‘rally’ in the cost of home loans. Never before have banking entities renewed their mortgage showcase so quickly in their race to follow the Euribor after years of hibernation. This ‘sprint’ has led to an increase in the amount of the average mortgage subscribed in some cases above 73,393 euros, as is the case in the Balearic Islands, 44,752 euros in the Community of Madrid and more than 20,000 euros in Navarra since 2020, when the measures to control the initial explosion of the pandemic shrunk the real estate market to a minimum.
The data made public this week by the National Institute of Statistics (INE) reveal that the average amount of money requested from financial institutions to purchase a home was last August 253,410 euros in the Balearic Islands, 222,019 in Madrid and 165,463 in Catalonia, very above the average, which reached 145,287 euros. It was followed by the Basque Country (144,199), Navarra (127,599), Andalusia (123,646), Aragon (115,645), Cantabria (115,110 euros) and the Canary Islands (111,691 euros), in addition to Melilla (151,947) and Ceuta (133,500). In the last places are Asturias (109,653), Galicia (108,934), the Valencian Community (106,706), Castilla la Mancha (105,772), Castilla y León (104,146) and La Rioja (102,905).
yes in august Murcia (87,087 euros) and Extremadura (86,836) they were the only two regions below 100,000 euros, in May 2020 they were almost half of the communities: Galicia (98,436 euros), La Rioja (96,726), Castilla y León (94,401), Castilla-La Mancha (92,077), Canarias (91,674), the Valencian Community (89,649) and, also, Murcia (86,088) and Extremadura (78,166 euros). Then, in full state of alarm to try to stop the covid, the average mortgage for the purchase of a home did not reach 200,000 in any region and was only close in the Balearic Islands (180,018 euros) and Madrid (177,267).
Above the average (126,783 euros) were also the Basque Country (154,922 euros) and Catalonia (146,865), in addition to Ceuta (183,511) and Melilla (144,378 euros); and below Aragón (115,510 euros), Navarra (106,119), Cantabria (104,260), Andalusia (103,469) and Asturias (102,882), along with the eight mentioned that did not reach 100,000 euros.
This increase is noticeable in the economic effort that households must make to finance the purchase of a home that ranges from more than 40% that must be made in the Balearic archipelago, 25.25 in Madrid and 21.84 in the Canary Islands, to 14.87% in Castilla-La Mancha, the seven above the average (14.59%). Lower has been in Catalonia (12.66%); Extremadura (11.09); Galicia (10.66); Cantabria (10.41), Castilla y León (10.32), Asturias (6.58), La Rioja (6.39), Murcia (1.16) and Aragón (0.12%). In the Basque Country, the variation is negative (-6.92%) because the average mortgage for August fell punctually that month to 144,199 euros, but it would also be positive, as in the rest of the State, if the comparison were made with nine of the previous 10 months.
August has also been a good month for the real estate market despite fears of an economic slowdown, in which the number of mortgages on homes increased by 10.5% compared to the same month of 2021, to add 36,721 loans, the highest figure in a month of August since 2010, when more than 50,000 mortgages were signed, according to INE data. With the year-on-year rise in August, more than eight points higher to that experienced in July, the home mortgage firm has chained 18 months of consecutive year-on-year increases, with an average interest rate of 2.67%, with an average term of 2 years. JanThe case of housesthe average interest was 2.52%, above the 2.49% of a year before, with an average term of 24 years.
The increase in the amount of mortgages has gone hand in hand and has not stopped the increase in the number of home sales, which last May, just two years after the collapse due to the pandemic, reached a maximum of 60,059 operations in the whole from the country. May also marked the maximum in eight communities: Canarias, Castilla la Mancha, Catalonia, the Valencian Community, Extremadura, Madrid, the Basque Country and La Rioja; and in a total of 16 provinces, according to INE data.
*The article has been translated based on the content of lainformacion.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!
For all the latest news click here
Denial of responsibility! HOS is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at email@example.com The content will be deleted within 24 hours.