Spain Real Estate News
Are you thinking about buying a home in 2024? With the beginning of the new year just around the corner, real estate investment is a topic that always generates interest and expectations.
2023 has been a year marked by high inflation rates and increased interest rates. This situation has translated into a decrease in purchase and sale operations. Despite this, housing prices have risen. In this scenario, the question may arise as to whether buying a house in 2024 will be a good decision.
Mortgage repayment periods are usually long. During that time, many circumstances may arise that make it advisable to change its conditions. The procedure to modify these conditions is called mortgage novation.
The owner of the mortgage must take the step to request the novation. The goal is to save money or obtain more payment facilities. However, the bank can accept or reject it or admit only some of the requested changes.
Access to housing is one of the most worrying aspects today. Prices, interest rates and the need to pay at least 20% of the home value upfront are just some examples of obstacles to overcome. To partially alleviate this situation, there are public aids to ease the buying.
These aids, granted by the different administrations, are of three types: guarantees to afford the home purchase, tax reductions and financial support for the mortgage.
The latest meeting of the European Central Bank seems to have marked a turning point. After ten consecutive increases in the money price in just over a year, they have decided to freeze it. Interest rates remain at 4.5%, meaning a break for the economy and, obviously, for the real estate sector.
Now, we still have to see what will happen to the reference index. Although the Euribor 2024 forecasts point to a slight reduction rather than containment.
Mortgage subrogation involves a modification of the loan obtained for buying a property. It is a common request to improve its conditions when circumstances allow it. Besides, it is also a usual practice when selling a property with charges.
Although mortgage subrogation is a frequent operation, it is advisable to know all its details to decide if it is a good idea or not to request it. Learn more about mortgage subrogation below.
After the rise in interest rates to 4.25% and the Euribor at its highest for years, the number of mortgages has decreased in annual rates in Spain, and their average amount too, according to recent data from the INE. But this situation has had another consequence: more and more people are opting for early mortgage repayment to avoid what these increases imply in the monthly instalment of their mortgage loans.
Some analyses ensure that the early repayment of the mortgage has increased by figures close to 50% compared to 2022. However, what savings can it bring?
The forecasts have come true, the price of money continues to rise, and with the new ECB rate hike, these are now at 4%. And we must add that Euribor has also broken the 4% barrier. A scenario that portends a cooling off in the real estate sector, even more considering that forecasts do not currently point to a rates reduction nor the reference index.
...continue reading "New ECB Interest Rate Hike: Impact on Mortgages and Real Estate Market in Spain"
At its last meeting in February, the ECB decided to raise interest rates again, and it will be the fifth in less than a year. In twelve months, the reference index for mortgages has gone from being negative to reaching 3%. And a rise in the Euribor in 2023 is not ruled out, along with more measures aimed at returning inflation to around 2%.
In fact, forecasts point to a new rise in the Euribor in 2023, reaching rates unknown since 2008. If in January 2022, it stood at -0.477, by the end of 2023, it could touch 4%.
...continue reading "New Rise in The Euribor in 2023: How It Affects the Real Estate Market"
The unstoppable rise of Euribor has put many families with variable-interest mortgage loans against the ropes. The reference index has gone from negative to close to 3% in a few months. To avoid the burden this entails for the most vulnerable families, the Government of Spain has approved a package of mortgage aid.
These measures, which will benefit close to a million households according to official forecasts, will come into force at the beginning of 2023. Although these actions were agreed with the banks, it is up to them to adhere to the so-called Code of Good Practice.
The economic situation points to a rise in interest rates. Europe has largely recovered the GDP lost due to the pandemic; however, inflation has skyrocketed. In February, the CPI -Consumer Price Index- in Spain experienced an upward variation concerning the previous twelve months of more than 7%, a figure that wasn't that high for decades.
For its part, the US Federal Reserve already predicted a rise in interest rates at the beginning of the year, and the president of the ECB recently left the door open to it. The international outlook added to the rise in electricity, gas and fuel pricing could be the final push that leads to the decision.
...continue reading "Is an EU Interest Rate Hike on the Horizon?"