Good news for Spain’s domestic property market. The number of home mortgages issued in June was 19 per cent higher than the same month of 2013, only the second time in the last four years monthly mortgage activity has spiked, according to the INE, the National Statistics Bureau.
The average value of the mortgages increased a slight 1.3 per cent from a year earlier, to an average of €98,582. But there was a sharp rise in the total value of mortgages for urban dwellings, which rose 14.1 per cent from a year earlier.
The data also shows a drop in interest rates. The average interest rate for home mortgages in the month was 3.88 per cent, 8.8 per cent less than a year ago, although slightly up from 3.82 per cent in May.
The number of home mortgages issued was still 4.6 per cent lower than May, but that compares to a drop of 22.6 per cent between May and June in 2013. The total capital loaned for home mortgages was down 5.2 per cent from May.
But it’s the annual numbers that inspire promoters, who are looking for any sign that banks are ready to start lending again. In recent months the banks have reported an increase in mortgage activity. However, the increases are relative to almost non-existent lending a year ago.
The autonomous communities with the highest number of mortgages issued in June were Comunidad de Madrid (3,481), Andalucía (2,900) and Cataluña (2,435). The number of home mortgages issued in Madrid was up 27.5 per cent from a year ago.