2023-08-02 05:06:56
Spanish households continue pulling the credit to maintain their consumption levels, one of the keys for the Spanish economy to maintain its growth. At the same time, mortgage debt is going down due to the drop in new production, both due to uncertainty and the rise in interest rates.
This is shown by the statistics of the Bank of Spain, which confirm both trends in June. He stock of mortgages fell by another 1,236 million in the month, up to 503,364 millionwhich means the lowest number since March 2006. The figure has been falling for a year, coinciding with the new cycle of rate hikes by the European Central Bank (ECB), which has led the Euribor from -0.5% to 4%.
First alert in consumer credit with the largest increase in delinquency since 2009
Oscar Gimenez
The bankers have confirmed, in the presentation of results for the second quarter, that there is a general drop in mortgage production that they attribute to lower demand. However, the quarterly surveys of the Bank of Spain also show a tightening of conditions.
The fall in demand is due to the increase in interest rates and, in addition, “because of the lower consumer confidencethe greater use of savings and the worse prospects for the housing market”, according to the Bank Lending Survey for the second quarter.
On the other hand, banks are noticing an increase in amortizationswhich is one of the destinations for the drop in savings in deposits and current accounts that is taking place this year, with the exception of the rebound in June, the month in which it is common for it to rise due to the payment of extra payrolls. The most striking case is that of Santander Bankwhich pointed out in the presentation of results for the second quarter that it has gone from 150 million a month in the first quarter, when this figure had already increased, to numbers between 250 and 300 million in the second trimester.
The decline in the mortgage market has led to the weight of loans for house purchase have fallen below 72% of total household bank debt for the first time since 2005, according to the Bank of Spain statistical series.
With consumer credit, the opposite occurs. Families are using these loans to maintain consumption, and the stock debt increased in June, as usual. In this case, in 852 million, up to 970,606 million, the highest figure since September 2009.
In this way, the weight of consumer credit, contrary to what happens with mortgages and although it is still far from them, continues to grow in the debt of families with banks. In June close to 14%which is the highest level since 2003, at the dawn of the housing bubble, when The request and granting of mortgages skyrocketed.
Spanish households continue pulling the credit to maintain their consumption levels, one of the keys for the Spanish economy to maintain its growth. At the same time, mortgage debt is going down due to the drop in new production, both due to uncertainty and the rise in interest rates.
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