Interest rates fell 5.1% in April
The number of new mortgages taken on homes in April was 29,032, which is 0.1% less than in April 2018. The average amount of the loans was 124,655 euros, an annual increase of 0.7%, according to data from the INE.
The total capital loaned on properties in April reached 5,325.6 million euros, a 2.6% fall when compared to the previous April. For housing, the total capital borrowed was 3,619 million euros, a slight increase of 0.6%.
Interest Rates
For all mortgages taken in April, the average interest rate at the start of the loan term was 2.51% (5.1% lower than in April 2018) and the average loan term was 23 years. 58.7% of mortgages began on a variable rate, with 41.3% at a fixed rate.
The average interest rate at the start of the term for variable rate mortgages was 2.23% (6.4% lower than in April 2018). On fixed rate loans the average rate at the start was 3.07% (4.8% lower than last year).
Looking only at mortgages taken for the acquisition of a home, the average interest rate was 2.59% (2.9% lower than last April) and the average loan term was 24 years. 56.8% of new home mortgages taken in April were on a variable rate, and 43.2% on a fixed rate. The number of fixed rate loans increased by 6.7% year-on-year.
The average interest rate at the start of the loan term for home mortgages on a variable rate was 2.3% (a decrease of 5.1%), and 3.09% for fixed rate mortgages (1.8% lower).
Results by Autonomous Community
The community with the largest number of new mortgages taken in April was Andalusia (6,065). Madrid and Catalonia were next with 5,380 and 4,636 new loans, respectively.
The community to see the most capital loaned for a home purchase was Madrid where 936 million euros were borrowed in April. Andalusia and Catalonia were next with 676.2 million and 657 million euros, respectively.
The highest annual variation rates in the total capital loaned was seen in Navarra with a 59.4% increase. Andalusia and Aragon were next with increases of 26.8% and 26%, respectively.
The highest annual increase in the number of new mortgages taken for purchasing a home was seen in Navarra (47.4%), while in Andalusia there was a 16.7% increase and a rise of 15.1% in Rioja.
On the other hand, the communities that saw the largest negative variations were Murcia (-25.8%), the Balearic Islands (-22.4%) and Madrid (-10.3%).
