Home Mortgage Arrears Continue to Fall
According to data published this week by the Bank of Spain, the number of households defaulting on their mortgage for a home purchase stood at 4.65% of the total housing mortgages in the second quarter of 2016, down from 5.2% in the same period of 2015. Compared with the first quarter of 2016, the number of mortgage defaults moderated slightly, as the rate then was 4.78%.
El Mundo reported that, in total, the value of all mortgage loans granted to households for the acquisition of a home in Spain stood at 523,595 million euros at the end of June this year, which is 18,940 million euros less than the figure quoted last year, representing a decline of 3.5%. Of the total housing loans, some 24,535 million euros were in question in June of this year, compared with 28,216 million euros in June of 2015.
The number of loans for home purchase began 2016 low, after accumulating five consecutive years of moderation to the end of 2015. Since 2010, the last year in which there was an increase in home loans, the value of home loans has fallen by 16%, dropping from 632,449 million euros to 531,256 million euros at the end of 2015.