Housing boom ‘will start to decline soon’

8 March 2004

MADRID – Mortgage loans rose by 24 percent in 2003 – the biggest increase for eight years, analysts said Monday.

The Spanish Mortgage Association (AHE) said mortgage loans financed by banks and financial institutions rose to EUR 467,877 million last year.

Figures for January 2004 showed a 24 percent inter-annual rate increase, to EUR 474,690 million, a monthly increase of EUR 6,813 million, according to the report.

The AHE pointed out that stable interest rates are fuelling housing demands and driving prices up.

But they added that the current boom will probably start to decline soon.

Savings banks lead mortgage loan financing, with 2003 figures totalling EUR 231,827 million.

Other banks followed this figure with EUR 167,869 million, cooperatives with EUR 26,093 million and financial institutions with EUR 5,112 million.

[Copyright EFE with Expatica]

                                      Subject: Spanish news