Home Mortgage Approvals Up 3.9% in June
There were 30,600 new home mortgages approved in June. This represents an increase of 3.9% when compared to June in the previous year. The average amount of the new mortgage loans was 123,896 euros, an increase of 5.1%, according to the latest figures from the INE.
The total amount of capital loaned in June reached 6,123.6 million euros. The amount represents an increase of 18.4% over the same month in the previous year. For housing, the total loaned was 3,791.2 million euros, an annual increase of 9.2%.
Interest Rates
For all new mortgage loans taken in June, the average interest rate at the start of the loan term was 2.49% (6.8% lower than in June 2017) . The average term was 23 years. 62.9% of mortgages were on a variable interest rate and 37.1% on a fixed rate.
The average interest rate at the start for variable rate loans was 2.19% (11.3% lower than in June 2017). For fixed rate mortgages is was 3.25% (0.5% higher than last year).
Looking only at home loans, the average interest rate at the start of the term was 2.63% (4.5% lower than June 2017), and the average loan term was 24 years. 60.8% of home mortgages taken in June were on a variable rate. The remaining 39.2% were on a fixed rate loan. Mortgages on a fixed interest rate experienced a 2.2% decrease in the annual rate.
The average interest rate at the start of the term was 2.43% for home mortgages on a variable rate (a decrease of 5.7%), and 3.03% for fixed rate loans (3.5% lower).
Results by autonomous communities
The communities with the largest number of new mortgages taken for housing in June were Madrid (6,399), Andalucía (5,765) and Cataluña (4,852).
Annual variation rates were highest in Aragón (48.4%), Extremadura (30.0%) and Madrid (12.3%).
Loaned capital for home mortgages was highest in Madrid (1,130.8 million euros), Catalonia (682.5 million) and Andalusia (586.8 million).
The Communities with the highest monthly variation rates in the number of housing mortgages are Madrid (23.2%), Aragón (10.6%) and Extremadura (8.1%).
The Canary Islands (-46.6%), País Vasco (-18.2%) and the Balearic Islands (-17.8%) presented the biggest negative monthly variation rates.
