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Fixed-rate mortgages top 75% in April setting a new record in full swing of Euribor

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The mortgage bank continues to grow, but with less intensity. The number of Mortgages on apartments It rose by 4.5% in April compared to the same month in 2021 and stood at 33,423 registrations, the National Institute of Statistics (INE) reported this Friday. The year-over-year increase is much more modest than the 18% in March, which hit 43,378 headings, the highest volume since 2011 and the lowest since February 2021. Overall, it’s the highest one-month figure since April 2010, when more than 50,000 mortgages were signed.

Beginning in April, the home mortgage company is chaining 14 months of consecutive annual gains. Cumulated for the first quarter, registrations increased by 16.3% compared to January-April of the previous year.

The average home mortgage size rose 2.2% year-on-year to €142,253 in the fourth month of the year, while debt rose 6.8% to €4,754.5 million.

Historical maximum in fixed interest

The new all-time high marked by the fixed rate mortgages, which already account for 75.3% of the total, versus 24.7% for variable rate loans. The greater preference for the fixed rate coincides with the rise of Euribor and its positive entry last April for the first time in more than six years. The indicator, which is used to calculate the rates of most variable-rate loans, started its uptrend in February and broke out of negative territory on April 12. Indeed, the month ended with the first positive rate (0.013%, almost half a point up from a year earlier) since 2016, leading to an increase in index-related mortgage prices. Since then, the 12-month Euribor has risen steadily and is already over 1% on the daily rate.

In April, the average home mortgage rate was 2.52%, up from 2.51% a year earlier, with an average tenor of 25 years. The average initial interest rate was 2.16% for adjustable rate residential mortgages and 2.65% for fixed rate mortgages.

After autonomous communities, Andalusia (6,688), Catalonia (6,141) and Madrid (5,598) registered the most home mortgages in April 2022.

On a month-to-month basis (April vs. March), home mortgages fell 22.9% while debt fell 24.8%. In both cases, these are the biggest single-month drops since April 2018.

Source elpais.com

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