Mortgages fall 34% in Tarragona, the second largest decrease in Spain
The rise in rates is beginning to be noticed in some signs of the housing market, although not uniformly. The inertia goes by territories: in some places the home mortgage firm continues to rise despite the rise in prices.
But in Tarragona it is not happening like that. The braking seems especially accused. In August, according to the latest available data, published this week, the home mortgage firm in the province fell by 34% compared to July. From 1,090 it went to 717. There were 373 operations less, in just one month.
Tarragona was the second province in all of Spain with a more pronounced decreaseonly behind Cuenca, which led that decline with a 48% reduction. In the whole of Spain, mortgage loans for a house grew by 2.2%.
It is true that it is August, a somewhat special month due to its holiday component, but it is also true that the figure is also lower than that of the same month of 2021. At that time there were 761 home mortgage firms in Tarragona, almost 6% more than now.
The dynamics does not only affect homes, but also other real estate. The mortgages of all the farms as a whole collapsed in August by almost 31%going from 1,342 transactions to 928, according to INE statistics. In this indicator, Tarragona also appears as the second province in all of Spain with such a marked drop. Only Cuenca, again, exceeds it, marking a bump of 40%.
The decrease is also noticeable in the amounts of mortgage loans: they fell by 36%, going from 173 million to about 110
Even more descends in the counties of Tarragona the amount of those mortgages that were contracted: it fell by 36%, going from 173 million to about 110. It is, in any case, braking that somehow begins to tarnish a very positive year from the real estate point of view. From January to August, they had been constituted 8,209 mortgages taking into account all types of farms. It is 26.5% more than in 2021 and 67% higher than the balance for the same period in 2020, an anomalous year marked by the outbreak of the pandemic.
The registers of sale and mortgages have been breaking records of the decade, once the worst of the pandemic had passed. Until the recent rise in rates, the sale of houses and apartments was going at a very good pace, oblivious to the economic turbulence caused by inflation.
Mortgages on all farms, not just homes, sank 31% in Tarragona. Only in Cuenca they fell more (40%)
Another palpable trend in Tarragona has to do with the types. Fixed mortgages have shot up 22% this yearwhile the variables, basically made up of the Euribor as an index and subject to these latest increases, have plummeted 30%.
The dynamic was seen, for example, in June, when there was the maximum number of fixed mortgages constituted in the last year, 911, and the minimum in the case of variables, 150, according to data from the INE in Tarragona. The races against the clock for change the rate at the financial institution They are also common during these last weeks.