Inflation and rising interest rates have had an impact on the mortgage market. Kutxabank predicts a decline of less than 10% in Euskadi, putting the country ahead of the rest of the Spanish state.
Kutxabank predicts a decline in mortgage applications in the Basque Country of 9.7% in 2023, which will continue and continue through 2024, albeit with much less intensity, with a “more moderate” decline of 3.5%, to recover “gradually” from 2025. .
These are some of the main conclusions announced by the bank on Tuesday and included in a study prepared by Ceprede for the entity, with the aim of knowing the evolution of the mortgage market.
The results of this report, which puts forward the forecasts for the creation of new mortgages in the years 2023 and 2024, as well as in the five-year period 2025-2030, have been detailed at Kutxabank’s headquarters in Bilbao by the financial director of Kutxabank, Iker Arteagabeitia, and the professor of Applied Economics at the Autonomous University of Madrid, and general director of Ceprede, Julián Pérez.
Specifically, and as stated in the report, it is estimated that 20,641 new mortgages will be signed in the Basque Country this year and the end of this year, 9.7% less, compared to the 22,867 concluded in 2022 and the 19,923 planned in 2024. which in turn would represent a decrease of 3.5% compared to the current 2023.
As for the average value, this year it will exceed 161,000 euros (161,484), 0.4% more than in 2022, while the report’s forecast for 2024 is 162,952, 0.9% more than this year.
For its part, the total amount borrowed this year will reach 3,333 million euros, 9.3% lower than in 2022 and another 2.6% less than the forecast for 2024, set at 3,247 million.
As Arteagabeitia has highlighted, “lending is mainly affected by the increase in financing costs, which could stabilize from next year.”
Compared to the decline in the number of mortgages concluded in Euskadi at the end of this year, the report commissioned by Kutxabank confirms that this evolution “slightly improves” the average for the Spanish market, where it will ultimately decline by 11.4%. from this year.
Source: EITB
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