According to the data provided by the entities to the Bank of Spain, in the first quarter of 2014 the APR of granted loans fell 10 bps, down to 3.4%.
The information permits drawing conclusions on the overall tendency that seems to have broken and leaned towards lower mortgage prices, however, in regard to the prices from the end of 2013, the rise in value still shows 5 bps.
Spanish banks´ mortgage signing shrinks at pace of 4% annually and the number of new loans is expected to continue the drop-off, in spite of better performance than in 2013, due to the fact that outstanding mortgages outnumber the new ones.
In turn, the banks offer lower return paid for deposit by 10 bps to stand at 0.9% APR for deposits for less than a year´s term. The cut makes the banks´ clients move their savings to, for example, investment funds from which the entities may gain high commissions.
Original article: Expansión (by M. Romani)
Translation: AURA REE