57,327 home sales were formalized during the period, the highest August figure since 2007
Neither the rise in interest rates nor the inflation crisis have so far managed to curb the attractiveness of the housing market. The INE stats for August show that both home sales and mortgage underwriting maintained double-digit growth in August, as is to be expected given many buyers’ decision to advance these operations, given the evidence that credit will continue to become more expensive in the coming months.
The trend is clear. In the first eight months of the year, the number of mortgages to buy a home increased by 14.2%. For its part, according to the INE, debt has increased by 22.4%
Taking only August into account, the number of loans has increased by 10.5% year-over-year, increasing for 18 consecutive months. During the period, loan capital grew by 16.4%.
Also notable is how banks are taking advantage of the rise in the Euribor to make their fixed rate mortgages less attractive and try to shift customers to variable loans, which are more profitable for entities in an environment of rising interest rates. In concrete terms, 71.9% of the new residential mortgages taken out in August had a fixed interest rate. It’s still a very high percentage. But it is also the lowest since January 2022.
The average interest rate on mortgages was 2.52%, 1.27 points higher than the average Euribor for that month, which was 0.99%. The average fixed interest rate was 2.71%, while the floating rate loans are already around 2.09%.
In terms of home sales, it rose 14.9% last August compared to the same month of 2021, to 57,327 transactions, the highest figure in an August since 2007, when 58,800 sales were exceeded, according to the National Institute of Statistics. (INE) reported this on Wednesday.
With year-over-year progress in August, home sales have chained 18 straight months of positive rates. Business growth has increased by almost seven points compared to the year-on-year increase in July, when home sales increased by 8%.
The year-over-year growth in home sales in August was the result of the 17% increase in the operation of used homes, to 47,206 sales, and the 6.1% increase in the operation of new flats, to a total of 10,121 transactions.
In the first eight months of the year, home sales increased by 20%, with an increase of 22.8% in second-hand homes and 8.7% in new construction.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
