The mortgage firm in Ourense closed October exceeding one thousand

2023-12-27 05:07:44

The signing of housing mortgages in the province slows down, but it continues to resist better the strong contraction experienced by the rest of the country. In October, 87 mortgage loans were closed, five less than in the same month last year. However, adding the first ten months, there are already more than a thousand mortgages, reaching 1,013. An October closing at such high levels has not been recorded since 2011.

According to data from the National Institute of Statistics, the annual cumulative figure shows growth compared to 2022: the signing of this type of loans rose by 4.6%. Thus, The contradictory trend of the Ourense real estate market with respect to the Galician and national market is corroborated. The province benefits from factors such as the high level of savings, the safe haven value of brick and the interest in tourist areas such as the Ribeira Sacra, which fuel the home buying and selling machine.

At the regional level, there are grayer times when it comes to signing mortgages. 10,450 were granted in the first ten months of 2023, which represents a drop of more than 22% compared to the previous year. Meanwhile, in the state levelnew loans amount to 323,988, which translates into a decrease of close to 18%.

The Euribor hit the ceiling

Behind the contraction of the mortgage market is, in part, the rise in interest rates adopted by the European Central Bank to combat inflation. Since September they have been at 4.5%. The one-year Euribor, an index usually used as a reference for variable rate mortgages, peaked on the 29th of that month, reaching 4.228%. Since then, it fell to below 3.6%. This is a respite for those who have variable mortgagesespecially those that have their interest reviewed semi-annually.

More renegotiations

Creditors of variable rate mortgages saw, throughout 2023, how each time it was more complicated for them to assume their debt payments. One of the options is to renegotiate and agree to a change in the conditions of the loan, which is called novation. The INE notes an increase of almost 13% in this type of registration changes, taking into account the first ten months of the year. There are already 361. In fact, 2023 has been the October with the most innovations since 2012, with 47 changes.