### The increase in variable rate mortgage percentages damages Abruzzo the most
The evolution of the real estate and financial market in Italy is showing worrying signs, especially with regard to variable rate mortgages. This trend appears to have a particularly significant impact on Abruzzo, a region that faces unique challenges in this context.
#### A growing phenomenon
Recently, a joint analysis between Facile.it and Mutui.it highlighted how Abruzzo has become the second Italian region in terms of number of variable rate mortgages disbursed, positioning itself immediately after Friuli Venezia Giulia and before Emilia Romagna. With a percentage of 16.1%, Abruzzo exceeds the national average which stands at around 14.5% for new borrowers who have chosen this formula from January 2022 to June 2023.
#### A decreasing trend
Despite the popularity of adjustable rate mortgages in the first half of 2023, it is important to note that the granting of these loans has shown a decreasing trend over the last six months. As of June 2023, inquiries have fallen below 10%, indicating a shift in consumer preferences. According to Ivano Cresto, managing director of financing products at Facile.it, this decline is destined to intensify in the coming months. The main reason lies in the fact that on average four to five months can pass between the request for the mortgage and its actual stipulation; therefore, the variable mortgages granted in the first part of the year were requested in the second half of 2022, a period in which the European Central Bank had just started to increase interest rates.
#### Implications for Abruzzo
These dynamics have direct repercussions on the economic and social fabric of Abruzzo. The region sees a significant portion of its population engaged in variable rate mortgage contracts; therefore, increases in interest rates can translate into greater financial burdens for the families involved. Furthermore, the hot Abruzzo real estate market could suffer slowdowns due to the lower attractiveness of variable rate mortgages.
#### To the future
The current situation raises several questions about the future of housing affordability in Abruzzo and the general economic impact of interest rate increases on mortgage lending. While it is true that the hot interest in fixed rate mortgages could offer greater stability to new property buyers, on the other hand the condition of those who already hold a variable contract remains critical.
In conclusion (although a concluding section is not required), it is clear that the current dynamics represent both challenges and opportunities for the Abruzzo and wider Italian real estate market. It will be critical to monitor how consumers and institutions respond to ongoing changes in the mortgage lending industry.
