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New Home Mortgages Increased in July

New Home Mortgages Increased in July
New Home Mortgages Increased in July

In July, the average home loan was €125,120

The total number of new mortgages approved in July was 137,766 euros. This represents a 0.6% fall when compared to the same month in 2017. Of those, 29,287 were mortgages for a home purchase, 14.6% more than July in the previous year.

The total borrowed capital reached 5,407.3 million euros, 15.2% more than in the same month last year. In regard to home mortgages, the borrowed capital stands at 3,664.4 million euros, an annual increase of 17%.

The average amount of the home mortgages was 125,120 euros, an increase of 2.1%, according to data from the INE.

Interest Rates

For all the mortgages taken out in July, the average interest rate was 2.55%. This is 6.3% lower than July 2017. The average duration of the loans was 22 years. 62.3% of mortgages were taken on a variable interest rate, and 37.7% were on a fixed rate.

The average interest rate at the start of the term was 2.32% for variable rate loans (7.3% lower than in July 2017). For fixed rate loans, the average interest rate was 3.07% (5.7% lower than the same period last year).

Looking only at home mortgages, the average interest rate at the start of the loan term was 2.59% (6.3% lower than July 2017) and the average term was 24 years. 59.9% of mortgages taken for a house purchase in July were on a variable rate, with 40.1% on a fixed rate. The number of fixed rate home loans experienced an annual variation of +14.5%.

The average interest rate at the start of a home mortgage term was 2.36% for variable rate loans (-8.7% annual variation), and 3% for fixed rate loans (-3.9% annual variation).

Results by Autonomous Community

The communities with the highest number of mortgages taken for housing in July are Madrid (5,713), Andalucía (5,382) and Cataluña (5,120).

The communities to see the highest annual variation rates were Extremadura (38.9%), and Valencia and La Rioja (28.1% in both cases).

The most capital lent for home loans was in Madrid (990.1 million euros), followed by Catalonia (729.3 million) and Andalusia (567.5 million).

The highest monthly variation rates in the number of housing loans were seen in La Rioja (57.2%), Asturias (11.9%) and the Balearic Islands (11.5%).

On the other hand, Extremadura (-25.8%), Aragón (-23.7%) and Navarra (-18.1%) presented the biggest negative monthly variation rates.