According to data released by the National Statistics Institute (INE) on Thursday, there was an 8% decrease in the number of mortgages taken out on homes in the Canary Islands in April compared to the same month in 2022, totaling 927 loans. The capital loaned on the islands also experienced a 6.3% decline, amounting to €108,626,000 compared to April last year.
Regarding the total number of mortgages on rural and urban properties, the Canary Islands recorded 1,229 mortgages, with 1,193 of them being urban properties. The capital loaned for these mortgages reached €205,891,000.
Out of the 1,193 urban properties, 927 were dwellings with a loan capital of €108,623,000. Additionally, there were 10 plots of land with €1,353,000 loaned, and 256 other urban properties with a capital of €92,166,000.
In Spain as a whole, the number of mortgages taken out on dwellings decreased by 18.3% in April compared to the same month in 2022, totaling 27,053 loans. This figure represents the lowest recorded since December 2020. The average mortgage amount for homes also fell by 4.1% year-on-year in the fourth month of the year, reaching €136,945, while the capital loaned experienced a decline of 21.6%, amounting to €3,704.7 million.
Among the autonomous communities in Spain, Andalusia (5,473), Catalonia (4,477), and Madrid (4,373) reported the highest number of mortgages taken out on dwellings in April. In terms of the capital lent for mortgage constitutions on dwellings, Madrid (€882 million), Catalonia (€697.8 million), and Andalusia (€648.1 million) were the regions with the highest amounts.
Only one community, Aragon, saw an increase in the number of mortgages on dwellings signed in April compared to the same month in 2022, with a growth of 31.5%. Conversely, the other regions experienced year-on-year decreases, particularly in La Rioja (-30.9%), the Balearic Islands (-28.4%), and Catalonia (-27%).
On a month-on-month basis (April over March), mortgages on dwellings saw a significant decline of 25.2%, while the capital loaned experienced a decrease of 28.2%. These declines represent the largest recorded in April in at least five years.
In the first four months of 2023, mortgage loans for housing have fallen by 8.4%. This decline is accompanied by a decrease in the capital loaned by 9% and a slight decrease in the average capital by 0.7%.
THE INTEREST RATE ON HOME LOANS SOARS
In April, the average interest rate for total mortgage loans reached 3.43%, marking its highest level since May 2015. The loans have an average term of 23 years.
Specifically for housing mortgages, the average interest rate in April rose to 3.09%, a significant increase from the 1.77% recorded a year earlier. This figure represents the highest average interest rate since April 2017. The average term for these housing loans is 24 years.
Out of all residential mortgages taken out in April, 38.7% were at a variable rate, while 61.3% were signed at a fixed rate. This is the lowest percentage of fixed-rate mortgages since April 2021 and is 14.1 percentage points lower than the peak of 75.4% reached in July 2022. At the start of the mortgage term, the average interest rate was 2.78% for variable-rate residential mortgages and 3.29% for fixed-rate mortgages.
The National Statistics Institute (INE) recently revised the statistical series of interest rates since January 2020. This revision was implemented to validate the accuracy of the average initial interest rate results for mortgages taken out during that period.
THE TOTAL NUMBER OF MORTGAGED PROPERTIES FALLS BY 18.7%
Data from the statistical body reveals that in April, the number of mortgages on rural and urban properties, which encompass dwellings, experienced an 18.7% decline compared to the same month in 2022, totaling 35,621 loans.
Furthermore, the capital loaned for mortgage loans dropped by 19.6% in the fourth month of the year, amounting to €5,639.5 million. The average amount of mortgages constituted on the overall number of properties also saw a 1.1% decrease, reaching €158,321.
MORTGAGES THAT CHANGE CONDITIONS FALL
In April, a total of 9,907 mortgages underwent changes in their conditions, representing a 23.1% decrease compared to the same month in 2022.
Examining the types of changes made, there were 7,851 novations, which are modifications made with the same financial institution. This figure experienced an annual decline of 26.8%.
The number of operations involving changes in institution, known as subrogations to the creditor, amounted to 1,699 mortgages. This reflects a 1.5% increase compared to April 2022. In 357 mortgages, the holder of the mortgaged property changed, referred to as subrogations to the debtor, representing a 26.1% decrease compared to the previous year.
Out of the 9,907 mortgages with modified conditions, 32.3% of the changes were related to adjustments in interest rates. Following the changes, the percentage of fixed-rate mortgages increased from 17.7% to 39.9%, while the proportion of variable-rate mortgages decreased from 81.1% to 58.2%.
The Euribor remains the rate to which the highest percentage of variable rate mortgages is referenced, both before the changes (75.7%) and after (54.8%).
Following the alterations in conditions, the average interest rate for variable-rate mortgages increased by two tenths of a percentage point. Conversely, the average interest rate for fixed-rate mortgages decreased by three tenths of a percentage point.