The average repayment on mortgage loans has “increased significantly” in recent months and was 18.7% above October 2021 in October, but only 5% of contracts had a repayment of more than 630 euros, INE reported this Wednesday.
“In recent months, the average value of home loan payments has risen significantly, with year-on-year rates of change exceeding those of the Consumer Price Index (IPC),” the National Institute of Statistics (INE) says in an analysis description of credit contracts. , released this Wednesday following the “successive rises in interbank money market reference rates” since the beginning of the year, impacting implied interest rates on mortgage loans (TJICH) and the value of benefits payable by households .
Thus, he points out, “in October 2022, the average term for the ‘home purchase’ goal was 18.7% higher than in the same month, while the CPI recorded a 10.1% change rate”.
According to INE, “until April 2020, the variation of these two indicators was relatively close”, but “the moratoria applied to mortgage lending due to the pandemic caused negative variations in the average term of about 9% until June 2021”.
“Since then, the variation in the average term has systematically exceeded that of the CPI, even after the dissipation of the base effect that occurred until June 2022,” he notes.
Still, INE points out that “more than 75% of mortgages in force in October 2022 had monthly payments between EUR 100 and EUR 400, and only 5% had monthly payments of more than EUR 630”.
“It should also be noted the significant difference between the average (305 euros) and the median (257 euros), due to the strong asymmetry of the distribution,” he says, specifying that “25% of the contracts have a provision of more than 355 euros and only 5% of the contracts for a payment of more than 630 euros”.
The analysis carried out by INE also shows that “contracts signed in 2022 have an average (423 euros) and median (365 euros) performance that is 38.7% and 42.0% higher than that of all contracts, while maintaining a asymmetrical distribution, with 95% of the contracts with an advance of less than 940 euros”.
“In relation to the contracted values, the contracts signed since the beginning of this year have an average contracted value (131,000 euros) and median (117,000 euros) higher than those of all contracts (95,000 euros and 81,000 euros, respectively)”, he continues.
According to the statistical office, “90% of contracts signed in 2022 have a contract amount between 40,000 and 280,000 euros, in contrast to all contracts, which are in the same proportion between 30,000 and 200,000 euros”.
Analyzing the evolution of the contract amount for loans currently in effect based on the time of contracting, INE concluded that, “with the exception of the period between 2007 and 2014, a constant increase in the median contract value is notorious , ranging from just over 10,000 euros in the early 1980s to over 100,000 euros since 2020”.
“The strong growth observed in the most recent period is inseparable from the increase in house prices,” he points out, explaining that “compared to the series of the house price index (IPHab) that started in 2009, the it is clear that in both cases of rising trends, although less accentuated in the case of the contracted median value”.
Source: DN
