Mortgages, + 35% in the first quarter 2015 – BBC

Bank of Italy Bulletin June 2015

Milan , July 2, 2015 – 16:24

     
     
 

The Bank of Italy confirms that banks have begun to give mortgage loans. The statistical bulletin of the end of June showed that in the first quarter of 2015 were granted to households 7,072,000 of funding for the purchase of the house, with an increase of 35% compared to the same period of 2014. The figure is certainly very positive although it is less dramatic than it sounds if you read it carefully; first of all because it is significantly lower when compared to + 50% for the same period that had been reported by ABI.

In addition to data from both surveillance and those Bankers Association, which also processes data on the basis sample, do not distinguish between loans made from scratch and subrogation. And that they have a decisive influence indirectly always says the Bank of Italy, with the figure on the size of the loans. This is the total amount that families debtor should repay the loan if shut; these data are provided and updated each month through April, but we consider those of the previous month for comparison with the numbers of donations: in late March 2015, the banks had claims for real estate financing to the families of more than five years to 357 billion euro, while the end of March 2014, the consistency was 2.2 billion higher.

It means that the amount of installments paid in the 12 months to finance closed exceeded supply for the period. Since the subrogation does not affect the consistency (if I have an outstanding debt of EUR 100 thousand and change creditor for calculating total does not change anything) it is clear that a large chunk of the loans granted is represented by the replacement of loans already in progress. On the other hand also the dynamics of the housing market, with trades in slight decline in the first three months of the year (but no official confirmation) in small recovery in the second says that mortgages are going only in part to the financing necessary to buying your first home; instead they are often granted to those who have none would strictly need to buy the property but take advantage of low interest rates to acquire liquidity cheap. And that interest should be dropped tells even the Bank of Italy: according to the latest data from the report currency and banks fixed rates for longer than 10 years have positioned themselves in April to 3.10%, with a descent of 148 cents in a year, the variables to 2.30%, with a case of 79 cents.

2 July 2015 (modified July 3, 2015)

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