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Mortgage Industry in Spain: 10% Decline and Rising Interest Rates

BySamantha Jones

Mar 27, 2024
Spain | Mortgage rates decrease by 10% at the start of the year, reaching nearly decade-high interest levels

The mortgage industry in Spain has seen a 10% decline compared to January 2024, with 33,128 loans issued, according to data from the National Institute of Statistics (INE) published this Tuesday. This marks the focus on the average interest rate, which continues to rise and is now at its highest level since December 2014.

This year-on-year drop in January means that the home mortgage industry has now experienced 12 consecutive months of negative rates. However, this decline is less pronounced than the previous month. The average amount of mortgages for homes decreased by 2.7% year-on-year in January, reaching €138,149 euros, while the capital lent decreased by 12.7% to €4,576.5 million euros.

The rate policy adopted by the European Central Bank (ECB) to combat inflation and Euribor’s evolution have led to an average interest rate for mortgages on homes of 3.46%, with an average term of 24 years. About 42% of mortgages in Spain were taken out at a variable rate in January, while 58.2% were fixed-rate mortgages.

In terms of inter-monthly rates, home mortgages increased by close to 33% from December 2023 to January 2024, while the loaned capital increased by around

By Samantha Jones

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