2023-05-07 07:32:45
The demand does not stop but the entities reject the loan applications of the families. If we talk about companies the situation is different. The rise in rates has sunk the demand for business credit to levels of the previous crisis and mortgages remain at a minimum, the ECB has warned.
If we analyze the situation, banks fear that in this situation of uncertainty they only seek security and carefully choose clients to provide them with financing. The indicator to which most mortgages in Spain are referenced has just completed a positive year, going from 0.013% in April 2022 to 3.757% in the same month of this year.
The slowdown in credit activity is the pulse of the country but it also affects the rest of the euro zone. Making the offer more expensive makes them only bet on those who can pay with solvency.
Given the outbreak, on the other hand, of the banking confidence crisis in the United States with the collapse of Silicon Valley Bank, which Europe experienced with the same fall of Credit Suisse, the credit slowdown began and with it, consumer confidence .
We have not reached the middle of the year and the worst is yet to come: harsher conditions, more expensive loans and few mortgages granted.
The question is always the same: what happens to middle-aged people who still have almost a decade to pay off their mortgage? What about the early retirees? What is going to happen in the Spain that is aging but still has to?
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