The Decline of Euribor Leads to Record Mortgage Approvals in September

The reduction in interest rates and the decline of the Euribor have marked a new mortgage cycle in Spain and the province of Alicante. In recent months, the granting of mortgages has increased compared to 2023 data, reaching a record high in September for the year.

According to the latest data from the National Institute of Statistics (INE), a total of 2,572 mortgages were registered in the province of Alicante in September. This is the highest number of constituted signatures so far this year, surpassing April's figures by almost 300.

July marked the beginning of a new cycle with the first changes in monetary policy. A trend that September has confirmed after a slight drop in August. Compared to July, 281 more mortgages were granted in the province in September and, compared to August, there are 659 more signatures.

The figures are even more striking compared to September 2023. Comparing both months, it is evident that the curve has grown substantially. In September 2024, 657 more signatures were constituted than back then.

Additionally, INE data indicates that the total value of these granted mortgages is the highest by far this year, totaling 323 million euros, almost 40 million more than in July of this year and nearly 100 million euros more than the same month in 2023.

To see a higher number of mortgages granted in the province than this September, one must go back two years, to the same month in 2022, when a total of 2,583 of these loans were granted.

The real estate portal Fotocasa indicates that this marks the end "of a period of high tension and the trend of mortgage grants will be growth, due to improved loan conditions."

The director of studies at the real estate portal, María Matos, recalls that the Euribor fell below 3% for the first time, leading to a number of mortgages in September 2024 that "has not been seen since the boom of 2022." Therefore, Matos indicates that "the fourth quarter of the year will reflect this dynamism in home acquisition, driven by factors such as optimism and buyer confidence in the mortgage market."

However, not everything will be positive. The improvement in credits "will indirectly cause a new increase in housing prices by attracting more purchase demand to the market," warns Matos, who assures that "we will witness a new mortgage battle among banks to attract customers."

The expert states that "more affordable mortgages" will be seen and that "fixed-rate mortgages" could enter this new scenario strongly. Matos predicts that competition among banks "will drive a rebound in purchase demand and loan applications by the end of the year, so it is expected that mortgage signings will experience an acceleration."