Monday, May 4, 2015

Fly the mortgage market: + 50% in the first quarter. The drive back to … – Il Sole 24 Ore

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This article was published on May 4, 2015 at 12:53.
The last change is the May 4, 2015 at 15:13.

Strong recovery in the market for loans to households for house purchase in the first three months of 2015. From the sample Abi, composed of 78 banks, representing about 80% of the entire Italian banking market, shows that in the January-March quarter the amount of disbursements of new mortgages amounted to 7.897 billion euro, compared to 5.250000000000 the same period of 2014 with an annual increase of 50.4 percent.

The amount of new loans in 2015, states the note of Abi, is also higher than both the figure for the first three months of 2013 (4.337 billion) and the value of the first three months of 2012 ( 5177000000). The adjustable rate mortgages are, in the first quarter, 66.7% of total new loans; however, they are the significant increase in fixed rate mortgages which reached to March 2015 almost 35% of new loans (they were almost 18% twelve months before).

The strong recovery of the mortgage market is linked to the moment very favorable rates, with the three-month Euribor – to which are attached the adjustable rate mortgages – fell even below zero and the rate Irs – the benchmark for fixed-rate mortgages – also at historic lows. The IRS rate in 25 years, linked to the German Bund, in mid-April has slipped to 0.73% and now it is around 1 percent. Now you can get a fixed rate mortgage with a total cost of less than 3 percent.



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