Mortgages on homes rise 29.1% in August and chained four months of hikes

This year-on-year rally, which accumulates four consecutive months of increases, is slightly lower than that experienced in July, when mortgaged homes increased by 32.9%.

The average amount of mortgages on housing grew by 0.7% compared to August 2016, to 111,488 euros, while borrowed capital rose 30% year on year, to stand at 2,963.6 million euros.

In monthly rate (August on July), mortgages on housing increased by 6.9%, while borrowed capital fell by 0.3%.

The average interest rate for mortgage loans on housing reached 2.77% last August, compared to 3.24% in the same month of 2016, with an average term of 23 years. 59.6% of mortgages on housing were made at a variable rate, in contrast to the 40.4% that was signed at a fixed rate. The latter have increased by 55.4% in the annual rate.

For mortgages on variable-rate homes, the average interest rate at the beginning was 2.58%, compared to 3.16% for fixed rate mortgages. In both cases, the rates were lower than those registered in August 2016.

Source: El Economista