The constitution of mortgages continues to fall.

by Alex Musk

The economic crisis caused by the coronavirus pandemic has caused a significant decrease in the number of mortgages constituted in Spain. The most recent data, from last August, place the fall at 3.4% compared to the data for the same month of August last year.

The real estate sector is not going through a good time in terms of suncoast mortgages, which have been accumulating negative figures for six months in a row, beginning with the worrying 14.6% experienced in the month of March, when the first state of Pandemic alarm.

A sustained and increased fall

A figure that increased even more over the months: in April, with 18.4%, in May, with 27.6%. However, as the start of the new normal approached, the fall moderated: in June, there was a drop of 12.7%, and in July, it decreased by 23%.

However, the data provided by the National Institute of Statistics remind us that also during the month of August, an increase of 4% was achieved on the average amount of mortgages compared to the previous year. In this way, the increase has been 134,678 euros, and the amount of borrowed capital increased by 0.2%, which represents a total of 2,670 million euros more.

On the other hand, if we make a monthly comparison between July and August, we find that the amount of mortgages made on real estate has fallen by 23.8%, and the borrowed capital by 22.4%. Both in the case of mortgages and borrowed capital, these are their lowest figures since August 2016.

As for the type of housing that was signed, the majority (50.6%) were at a variable rate, and the rest (49.4%) were at a fixed rate.

Focusing on the data obtained by autonomous communities, the one that obtained the highest level of mortgages constituted during the past month of August was Andalusia, with a total of 3,689, followed by the capital, with 3,059 mortgages constituted and in third place Catalonia, with 2,787.

However, the communities are invested in terms of the amount of capital lent since Madrid is the community that has done it the most, with a total of 633.1 million euros. Then we have Catalonia, with 451 million euros, and finally Andalusia, with 416.8 million euros.

Those autonomous communities that have a higher annual variation rate with respect to the capital loaned are La Rioja with 145.4%, Canarias with 91.3%, and Castilla-La Mancha with 49%. On the contrary, the communities that have the lowest annual variation rate with respect to the loaned capital are Comunidad Valenciana with -20.4%, Cataluña with -11.1%, and País Vasco with -10.5%.

Regarding the purchase of a property, the autonomous communities with the highest annual variation rate in the number of mortgages were: La Rioja with 135.1%, Canarias with 55.9%, and Castilla- La Mancha with 43%.

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