hit tracker
Thursday, September 28, 2023
HomeLatest NewsThe price of new mortgages marks a new record although it moderates...

The price of new mortgages marks a new record although it moderates its rise

Date: September 28, 2023 Time: 11:16:57

The rise in the price of mortgages in Spain moderates its growth rate, according to data from the Bank of Spain at the end of June, despite the fact that it set a new record for the year. According to the TEDR interest rate supervisor, which does not take into account associated expenses such as insurance and commissions, new operations to buy a home stood at 3.72%. This data represents a slowdown in the upward trend in the rates applied to mortgages after the rise in interest rates in recent months.

Thus, the average mortgage rate barely suffered an increase of 0.8% compared to the data for May 2023. This slight increase represents an impression compared to previous months. For example, the interest rate rose 2.5% in May, from 3.60% in April to 3.69%. However, it stands at the highest level since January 2012.

In a year marked by inflation, the reference interest rate for mortgages has risen 120%, more than doubling the 1.69% at which the TEDR stood in June 2022, when the first rate hikes were announced to make facing the consequences of the war in Ukraine after 11 years of efforts to keep them down by the European Central Bank.

The TEDR applicable in mortgage renegotiations, on the other hand, has continued to rise without signs of reference. Those who are going to restructure their credit will do so based on a TEDR that has exceeded 4% this June after multiplying the 1.96% by just over 2 in the same month of 2022. This June the rate for renegotiations have reached 4.06% compared to 3.88% of the previous month.

For the set of credit on new housing operations, including new ones and renegotiations, interest closed June at 3.75%, just four basic points with respect to the data for May, when it was 3.71% (1% more).

FOR ITS PART, THE EURíBOR Has Also Reached Historical Figures This July, Reaching An Average Of 4.149%, A Barrier That Had Not Been Broken Since November 2008. It Is Estimated That This INCREASE IN THE 12-Month European Reference Indicator will cause an average increase of 231.41 euros in the monthly mortgage payment.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

Most Popular

Recent Comments