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Mortgage Interest Rates Fell in September

Interest rates fell 1.5% in September

Interest rates fell 1.5% in September

The number of new mortgage loans taken for homes in September was 32,457, representing a 9.5% annual increase. The average amount of the loans was 148,959 euros, 6.6% higher than in September 2017.

The total value of the loans taken for urban property reached 6,365.2 million euros. This represents an increase of 16.7% when compared to last year. For housing, the total borrowed capital reached 4,145.8 million euros, representing an annual increase of 14%, according to data from the INE.

Interest Rates

The average interest rate at the start of the term for all new mortgages taken in September was 2.64%, 1.5% lower than last September. and with an average term of 23 years. 61.6% of mortgages were taken on a variable rate, and 38.4% on a fixed rate.

The average starting rate for the variable rate loans was 2.35%, which is 4.7% lower than in September 2017. For the fixed rate loans, the average starting rate was 3.24%, which is 2.3% higher than last September.

For new loans taken for housing, the average starting interest rate was 2.59%, an annual fall of 8.3%, and the average term was 24 years. 59.9% of mortgages taken on homes were on the variable rate and 40.1% on a fixed rate. Mortgages at a fixed rate experienced a 16.7% increase in the annual rate.

The average interest rate at the beginning of the term was 2.36% for the variable rate loans, 10.8% down. For the fixed rate loans the starting rate was 3.02%, a fall of 5.9%.

Results by Autonomous Communities

The communities with the highest number of new mortgages taken on housing in September are Madrid (6,530), Andalusia (6,282), and Catalonia (5,246).

The highest annual variation rates were seen in La Rioja (67.4%), Extremadura (34.4%), and Asturias (29.7%).

The communities which saw the most capital borrowed for home mortgages were Madrid (1,219.5 million euros), Catalonia (758,9 million), and Andalusia (654.5 million)/

The highest monthly variation rates in the number of housing loans taken was Valencia (32.5%), Madrid (30.6%), and Murcia (21.5%).

The most striking negative monthly variations were seen in the Canary Islands (-23.1%), Extremadura (-15.9%), and Navarra (-13.2%).