The best October in 18 years: mortgages reach record highs, but growth slows

BarcelonaMortgage lending in Catalonia reached a new high in October, with 9,025 mortgage loans granted, the highest figure recorded for that month since 2007. However, this growth in the number of mortgages, sustained uninterrupted for the past 16 months, shows the first signs of decline. Since July 2014, every month has seen double-digit annual growth – the largest being in October of last year, with an increase of 52.7% – and now the number of mortgage loans has grown by only 1.3% compared to October of last year. For Spain as a whole, the figures are similar: the number of mortgages granted for home purchases reached 51,198 in October, 0.6% more than a year ago. This growth is much lower than in recent months, placing the figure below 2009 levels, according to Mortgage Statistics data published this Wednesday by the National Statistics Institute (INE). This trend reflects the previous decrease in mortgage prices, although this process is already beginning to reverse towards the end of the year and is expected to become noticeable in the coming months. In Catalonia, the average mortgage value has reached €190,000, the third highest value in the entire historical series, after growing by 12.46% compared to a year ago. This figure is explained by the increase in purchase and sale prices, which have driven up the amount of the mortgage loan – typically 80% of the appraised value of the property. In fact, in Catalonia, the real estate market is registering its best year since 2007, with 11,000 transactions in October. If we combine both variables, mortgages represent 82% of all sales.