Moody´s Believes Housing Price Will Fall More in Short Term

24/01/2014 – Expansión

Moody´s predicts that the housing prices in Spain will continue to fall in the short term due to the over-supply and meagre demand. What is more, the agency foresees slowdown in the upsurge of the defaulting mortgages due to the high unemployment rate and small increase.

In the report published yesterday, Moody´s points out that the possibility of non-payment in mortgages rises in case of the loan-to-value type (LTV) – the financed percentage of the house price – exceeding 80%, meaning that the possibility duplicates. (…)

Also, the report reveals that the mortgages granted to the foreigners residing in Spain by financial institutuions and managed by them are at higher risk of entering the late payment.

Source: Expansión