Spain | Mortgage rates decrease by 10% at the start of the year, reaching nearly decade-high interest levels

The Spanish mortgage market started the year with a 10% drop compared to January 2024, according to data from the National Institute of Statistics (INE) published this Tuesday. The focus is on the average interest rate, which continues to rise and is now at 3.46%, its highest figure since December 2014.

This year-on-year drop in January means that the home mortgage firm has now experienced 12 consecutive months of negative rates, though this decline is less pronounced than the previous month. The average amount of mortgages for homes decreased by 2.7% year-on-year in January, reaching 138,149 euros, while the capital lent decreased by 12.7% to 4,576.5 million euros.

The rate policy adopted by the European Central Bank (ECB) to combat inflation and the Euribor’s evolution has led to an increase in average interest rates for mortgages on homes, which is reflected in a rise of about 33% from December 2023 to January 2024 in terms of inter-monthly rates. However, there has been a trend towards moderation in mortgage financing due to rising financing costs.

In terms of inter-monthly rates, home mortgages increased by close to 33% from December 2023 to January 2024, while the loaned capital increased by about

By Aiden Johnson

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