Banks estimate that new mortgage loans in 2023 will rise to 1.4 billion euros from 1.2 billion euros closed in 2022 and forecast a market growth of 17% compared to the 30% that home loans grew in period from 2021 to 2022. In addition, according to the calculations of banks, the My Home program will work on demand, for which the platform should open in mid-March.

A key constraint preventing a more dynamic development of the market is the high level of interest rates due to a new increase expected by the ECB at its next meeting on 16 March. The central bank has factored in a 50 bps increase in the key rate and the 3-month Euribor has already risen to a 15-year high approaching 2.8%, raising the average floating rate above 5% – along with the spread applied by banks. Estimates are now pushing the euro up to 4% by the end of the year and de-escalating — at a slow pace — from mid-2024.

Households’ anxiety is evidenced by the massive move to fixed interest rates, which monopolize 95% of new loan interest rates, despite the reduction in floating rate margins adopted by banks in an attempt to contain the cost of new home loans.

The current fixed interest rates, although increased by 0.50 compared to last year, range from 3.10% for short-term loans for 3 years and go up to 4.90% for long-term loans for 30 years. In particular, the fixed interest rate of the Eurobank for 3 years is 3.10%, for 5 years – 3.60%, for 10 years – 4%, for 15 years – 4.20%, for 20 years – 4.40%, for 25 years – 4.50% and for 30 years – 4.50%. years by 4.70%. The fixed rate of the National Bank for 10 years ranges from 3.80% to 4.20%, the fixed rate for 15 years – from 4.05% to 4.45%, for 20 years – from 4.30% to 4.60%, for 25 years – from 4.45% to 4.75%. %, and a fixed rate for 30 years ranges from 4.60% to 4.90%. Alfa-Bank’s fixed rate for the first 5 years is 3.60%, 10-year fixed rate 4%, 15-year fixed rate 4.20%, 20-year fixed rate 4.60%. The bank’s interest rates increase by 0.30% in case of financing more than 60% of the assessed value of the property. Piraeus Bank applies fixed interest rates from 3.55% to 5.05% for a period of 3 to 30 years, while the bank’s floating interest rate is based on the monthly Euribor plus a margin that starts at 2.45% and goes up to 3 ,20%. . It should be noted that for the remaining term of the loan after the fixed period, a floating interest rate is applied, which for other banks is based on a 3-month euribor increased by 3.3% or 3.75% for the National Bank. bank, by 2% to 2.50% (depending on the loan amount) for Alfa-Bank and by 0.75% to 2.5% for Eurobank. It should be noted that after significant sales of red mortgages in which banks continued, home loan balances fell to the level of 2004, namely to 29.5 billion euros at the end of January, and new allocations are not able to lead to a significant expansion of credit in this sector, which has been steadily declining in recent years.