Mortgage credit continues to deepen its fall. The average to the Euribor, the index to which most of the variable-rate mortgages in Spain are referred, has not only accelerated the amortization of the credits, but has also caused the collapse of new financiaciaciaciacicasts to acquire housing, to such an extent, that the new requests do not compensate for this early repayment of these new credits.
In May, the amount of new operations to acquire a home and without counting the renegotiations, stood at 4,736 million euros, which, although it represents an increase of 21% compared to April (impacted by Easter) when it was at 3,913 million, compared to May 2022, it represents a 19% drop, when twelve months earlier the new mortgage balance stood at 5,857 million euros.
In the first five months of the year, the cumulative drop in new financing to purchase a home has been 22% to 21,070 million euros, compared to 26,983 million euros for the same period in 2022. The truth is that this decline census is not surprising. Both the Bank of Spain and the financial institutions themselves have indicated that the exercise would seduce a credit dominance due to the rise in rates and interest rates, which would leave out mortgaged futures that in the past would not have had a problem.
