Families will save 25,000 million in 2009 by the Euribor, according to the Spanish Mortgage Association
| Date: March 11, 2009 | Source: Economic @ 21 |
| Category: Economy | |
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Loading ... The Euribor, the indicator used for calculating mortgages in Spain, fell today to 1.932 percent, a level not seen since June 2003 when it registered the lowest daily rate of its ten year history.
After further decline today, the indicator is close to 1.929 percent, which marked the June 16, 2003, the lowest daily rate in its history.
In addition, the monthly average of March is already in the 1.973 percent from 4.590 percent to March 2008, thus continuing and could close the month with the lowest monthly average since the existence of this indicator.
As a result, the Spanish families will save about 25,000 million in 2009 due to lower mortgage payments resulting from the decline in Euribor, to be located "probably" in a lower average annual rate of 2.5%, according to the Association Spanish Mortgage (AHE) . This fall in interest rates, he adds, will also go back to "forced march" late payment.
This was said today at a press conference in Granada chairman of the AH E, Gregory Mayayo, who recalled that the estimate made a few months ago were summarized in saving some 20,000 million euros was made considering that lay at the Euribor half of 3%.
Mayayo explained that 2009 will be characterized by a decrease in interest rates, which affect "positively" to the holders of a mortgage loan, and that maintaining the current level of rates, all loans at variable and constant quota -which account for approximately 90% of the outstanding portfolio-hired before 2009 will be "quotas lower annual depreciation or much lower than they paid originally."
But he warned that while cutting interest rates will produce an improvement in the conditions of access to finance for the acquisition of home ownership in 2009 will be an increased demand for inhibition of the increased risks stemming from the deterioration of the economy, such as unemployment or insolvencies.
Mayayo said the main risk factor and budgetary stress of families will move in the interest rate of unemployment.
In this sense, the AHE considers that the current forecasts for the development of unemployment, which could reach five million unemployed, represent a "serious threat" to all families at risk of being affected.
By contrast, Mayayo predicted that people who have purchased a home in the last ten years and have no risk of becoming unemployed, referring to such officials or employees of strong-will have a "sweet year" as they will have more gross disposable income and strengthen their heritage.
Likewise, those who intend to buy a home and not at risk of becoming unemployed "find a really satisfactory mortgage scenario" will be available as a "historic range of real estate" in Spain and interest rates for mortgage financing "lowest of the last 50 years."
The president of the AHE considered that this "dichotomy in society" will be worse this year as we move through the strike, and said he will remain for 2010.
Asked about the measures taken to overcome the current situation, opted for tax treatment "favorable" to allow the acquisition of more housing and legal reform to end the structural interest rate risk, so that there is greater coexistence between types fixed and variable interest.
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