May 2006

You're watching the articles of Euribor for the month of May 2006.

Lower demand for loans in the euro

The banks of the eurozone found a drop in demand for loans in the first three months of the year, compared with the previous quarter, although its volume was still positive, said today the European Central Bank (ECB). At the ECB's quarterly survey of credit institutes in the euro zone, banks felt encouraged by the volume of loans to enterprises and the private sector, but noted that was lower than the peak reached in the last quarter of 2005.

This drop was particularly noticeable in the demand for mortgage loans, which resulted, according to the survey, some less favorable prospects of real estate markets and the rise of alternative sources of funding.

Written by Carlos Lopez on May 5, 2006 with 1 comment
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The average amount of mortgages in February rises 13.3% year

In January, the average amount of mortgages had risen 16.8 percent on-year to 145,108 euros.

For his part, the average amount per formed on residential mortgage stands at 134,612 euros, a 11.7 per cent more than the same month of 2005.

The value of mortgages constituted on urban estates in excess of 23,338 million euros in January, representing an increase of 25.3 per cent. In homes this amount reaches 15,428 million euros, 26.7 percent more than in January last year.

The savings are the entities that grant greater number of mortgage loans during February (with 51.1 percent of the total), followed by banks (34.8 percent) and other financial institutions (14.1 percent) .

As for the loan, the Savings Bank grants 49.8 percent of the total, 37.3 per cent Banks and other financial institutions 12.9 percent.

The average interest rate on mortgage loans from the savings banks is 3.39 percent and the average period of 25 years.

As for banks, the average rate of mortgage loans is 3.43 percent and the average time 25 years.

97.9 percent of mortgages made in February using a variable interest rate compared to 2.1 percent fixed rate.

The Euribor is the benchmark interest rate used in the formation of mortgages with 83.5 percent of new contracts.

MORTGAGES WITH CHANGES IN ITS TERMS

The total number of mortgages with changes in their conditions was 19,720 in February, representing a growth of 34.5 per cent.

In the case of housing, the number of mortgages that modify its terms rose 35.8 per cent.

Because the nature of the change in conditions, in February produced 14,923 innovations (or modifications produced with the same financial institution), representing an increase of 31.4 per cent.

The number of loans that change of entity (subrogation to the creditor) is 3494, 52 percent more on interannual rate.

For his part mortgages in 1303 changes the owner of the property mortgaged (subrogation of the debtor), representing an increase of 29.8 percent.

Written by Carlos Lopez on May 4, 2006 with 1 comment
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The Euribor exceeds 3.3%, reaching levels not seen since October 2002

The main indicator used in Spain to set the interest rate on mortgages climbed up to 3306% yesterday, which reached levels not seen since mid-October 2002.

According to analysts, the increase in the Euribor to twelve months, which in April had not dropped any day of the 3% level, will continue to rise until reaching exceeded 4% by year-end.

These price increases are occurring in line with statements made last week by several European Union's monetary, favorable to an increase in interest rates.

Written by Carlos Lopez on May 3, 2006 with 3 comments
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