The beginning of 2024 brought comforting signs regarding the demand for mortgages for the purchase of homes. According to the Mortgage Barometer of the Crif credit institution, the reduction in inflation and the imminent cut in interest rates by the European Central Bank (ECB), which should take place as early as June, have generated a positive recovery in the trend of financing. But this data should not only be seen as positive, for the market and for families. Let’s see why.
In fact, it was recorded in the first quarter of the year a recovery in demand for mortgages from families. Between the months of January and March, requests showed an increase of 1.9% compared to the same period in 2023. A noteworthy element is the marked rise in the month of March alone which saw a jump in demand of 6%. ,9%. According to Crif’s analysis, the growth in overall mortgage demand (which includes all types of requests, including subrogations) can be interpreted as an effect of the pre-established rebound after two years of caution by families.
Demand was mainly supported by the decline in the IRS, the reference rate for fixed rate mortgages, which favored a transition to variable rate subrogations. In practice, many people decide to renegotiate or replace the existing mortgage: an action which is usually accompanied by an extension of the duration or, for those credit institutions that provide it, theaddition of a new financed sum, for liquidity needs.
In any case, the still high values of interest rates continue to weigh on the average amount requested by consumers. Despite a sustained increase trend between 2017 and 2023, the value of requests in the first quarter of 2024 remained almost stable (-0.8%), with a modest increase (+0.3%) in March compared to the same period of the previous year. The average value of requests is updated to 144,213 eurosa figure that has stabilized due to high rates which lead to higher installments and, therefore, to a lower possibility of starting mortgages of higher values.
Analyzing the amount classes in 2024, Mortgage requests for sums between 100 thousand and 150 thousand euros remain among the most popular among Italian families (constituting 30.1% of the total), a figure in line with the corresponding period of 2023. Next, the preferred amount class varies between 150 thousand and 300 thousand euros, chosen by 26.8% of applicants. Over 80% of requests include repayment plans lasting more than 15 yearsconfirming the tendency of families to opt for payment solutions that burden the budget as little as possible, in order to ensure a margin for any unexpected expenses.
Simone Capecchiexecutive director of Crif, speaking to MilanoFinanza highlighted another emerging trend: the propensity towards “green” financing. This orientation falls within the framework of the European EPBD (Energy Performance of Building Directive), which intends to significantly reduce greenhouse gas emissions and energy consumption in the building sector by 2030. Capecchi underlined that “credit institutions already offer subsidized rates for new mortgages, be they subrogation requests or highly energy efficient properties“.
 good news and what families are asking for – Turin News){kind=link}