Average mortgage value fell 10.5% in July

According to figures from the National Institute of Statistics (INE), the average value of mortgages  for homes approved in July fell 10.5% to an average of 98,892€, compared to July 2011.

Overall, the average value of all mortgages constituted in Spain during July decreased 19.4% in the inter-annual rate with the average falling to 99,157€.

The main points of the press release are below.

During the month of July, the average amount of mortgage constitutions recorded in the land registries stood at 99,157 euros, a figure 19.4% lower than the same month the previous year and 19.0% lower than that recorded in June 2012.

In the case of mortgages constituted for dwellings, the average amount was 98,892 euros, 10.5% less than in July 2011, and 8.0% lower than that registered in June 2012.

The value of the mortgages constituted on urban properties was 3,858 million euros in July, indicating an interannual decrease of 28.9%. In dwellings, the capital loaned exceeded 2,402 million euros, 26.2% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in July (74.3% of the total), followed by Savings Banks (10.2%) and Other financial institutions (15.5%).

Regarding the capital loaned, Banks granted 71.9% of the total, Savings Banks 11.1%, and Other financial institutions 17.0%.

Mortgage interest rates

The average interest rate for the total of mortgage loans was 4.27%, indicating a 0.2% less than July 2011. Regarding dwellings, the average interest rate was 4.24%, representing an annual variation of 1.8%.

By institution, the average interest rate of Savings Bank mortgage loans was 4.34%, and the average term was 22 years. Regarding Banks, the average interest rate for mortgage loans was 4.38%, and the average term was 21 years.

92.1% of the mortgages constituted in July used a variable interest rate, as opposed to the 7.9% that used a fixed rate. The Euribor was the reference interest rate most used in constituting mortgages, specifically in 85.4% of new contracts.

You can download the full press release here: Mortgage Statistics – July 2012