Demand does not abate mortgage loans in July, but also in the January-June semester, both after a long period of suspension in previous years, households are rushing to meet their housing needs while maintaining the low fixed interest rates that have been in place for a long time today.

After all, real estate accommodation is not only a timeless characteristic of the Greeks, but also a safe haven in times of high inflationwhen interest rates on deposits remain close to zero and eat into disposable income. This is why households turn to the real estate market either for their own living or for investmentsto protect your savings in the long run.

According to data published by “K”Mortgage demand in terms of new applications remained at a 6-month high in July, up 8.3%. In particular, applications for its funding buying a home increased to 3,900 from 3,600 in July 2021 following an increase in demand recorded in the first 6 months of the year, during which new loan applications also increased by 8.3% and from 24,000 in the corresponding period last year to 26,000.

Households are locking in today’s low fixed interest rates for a long time to come.

According to the same data, new loans issued by banks in July increased to 95 million euros from 88 million euros in the corresponding month last year, registering an increase of 7.9% and bringing new payments in 7 months to 645 million euros compared to the previous month. 438 million euros in the corresponding period of 2021. It should be noted that new disbursements jumped to €130m in June as banks rushed to approve applications received in previous months ahead of the announcement of 6Q results and the need to improve new loan performance, which is their main area of ​​competition after a reduction in bad loans. loans. In particular, payments for the first 6 months of the year jumped to 550 million euros, recording an increase of 57.1%.

Strong demand for mortgages, according to bank sources, was boosted by the fact that the ECB’s key rate hike has not yet translated into new loan repayments, which are dominated by the still-low fixed rates offered by banks and which borrowers are rushing to get. lock in, looking for uptrend protection in floating interest rates. Based on current tariffs, fixed interest rates start at 2.9% for a short term of up to 3 years and go up to 4.20% for a long term of up to 30 years. According to the banks, more than 90% of new loans are concluded with a fixed interest rate for 10 years.

Keeping interest rates on new housing loans at a low level confirms the data published yesterday by the Bank of Greece, according to which the average interest rate on housing loans fell in July to 2.84% from 2.85% in June. The reason is high competition between banks to increase their share of new financing, which is also a harbinger of the final return to profitability. This is contrary to the general trend of increasing interest rates, as well as the course of interest rates on existing balances, i.e. for loans that were issued in the past, the weighted average interest rate on which increased – based on data from the Bank of Russia. Greece – in July up to 2.15% from 1.99% in June. The increase mainly reflects floating rate loans, which were affected by the increase in the 3-month Euribor, which continues its upward trend and rose to 0.654%. Forecasts raise the 3-month euribor to 1.8% by the end of the year from today’s 0.654%.