Spain’s 2023 mortgage stock at 18-year low

Specifically, the Spanish mortgage stock stood at 494,986 million euros in December, a decrease of 3.1% compared to December 2022 and a decrease of 0.3% compared to the previous month.

Since July, the stock of mortgages has been below half a trillion euros, which in itself is the lowest level since May 2006. If only the year-end figures are taken into account, the Spanish mortgage stock has fallen to the level of 2005.

New operations amounted to 5,128 million euros in December, which means that they closed 2023 with a total of 56,242 million euros. This is a high figure from a historical point of view, as in the last ten years it has only been exceeded in two years: 2021, with 59,425 million euros, and 2022, with 65,220 million euros.

Of the total new operations signed in 2023, 4,728 million euros correspond to mortgage renegotiations. Spanish households have not renegotiated such a large volume of mortgages since 2016, when mortgage loans worth 6,396 million euros were renegotiated.

The new credit granted in 2023 means that the total volume of mortgage repayments, both planned and early, was 72,239 million euros.

In terms of interest rates, new mortgages signed in December were at an average interest rate (NDER) of 3.74%, a fall of five basis points and the best figure since May this year. However, this is significantly higher than in December 2022, when mortgages were signed at an average rate of 2.91%.

Despite this, portfolio repricing has caused the weighted average interest rate on Spanish mortgages outstanding to rise by three basis points to 4.64%, the highest level since July 2009.

Original Story: Press Digital | Author: Agencias

Translation and edition: Prime Yield

Photo: Big Stock