Mortgage requests are rising again

Real estate market

The favorable conditions of fixed rates led to a growth in financing in the first 4 months of 2024. The value of properties to be purchased also increased slightly

by Antonio Cardarelli
May 21, 2024 12:17 pm

The greater convenience of fixed rate mortgages drove the market in the first four months of 2024. According to the data collected by Facile.it and Mutui.it up to April, requests for financing grew by 17% compared to the same period in 2023.

GROWTH IN AMOUNTS

In addition to the number of requests, the average amount paid and the value of the properties to be purchased also increase. As for the average amounts, the growth was 1.9% with applicants aiming to obtain an average of 132,900 euros. Again analyzing the sample of over 200 thousand mortgage requests collected online, The average value of the properties to be purchased was 204,545 eurosup 2% compared to the first 4 months of 2023. Regarding duration, requests dropped from 25 to 24 years while the average age of applicants increased to 40 and a half years.

FIRST HOME PURCHASE

The data collected online by Facile.it also allows us to observe requests for the purchase of first house. In this case the amount increased by 1.4% compared to 2023, up to 136,244 euros, while the value of the properties is slightly decreasing at 186,915 euros (-1%). However, the average age of the applicant (37 and a half years) and the duration of the repayment plan (26 years) are stable.

FIXED RATES AT 2.59%

The favorable conditions of fixed rates also influenced the increase in requests for subrogation. Currently the best offers available for a standard mortgage of 126 thousand euros in 25 years old (with a ratio between the mortgage requested and the value of the house at 70%) they see a Tan of 2.59% with a monthly installment of 571 euros. This is a saving of 90 euros compared to the best installment available between January and April last year. Such favorable conditions have not been seen since September 2022. In the case of a fixed rate green mortgage (for properties in class A or B) the rates are even more advantageous and start from a Tan of 1.99% with a monthly installment of 533 euros .

SURROGATIONS INCREASE

The requests of subrogationas mentioned before, represented the 26% of requests collected online in the first four months of 2024, an increase of 9% compared to the same period last year. On the supply front, Facile.it found that in the first four months of the year the conditions offered by the banks were overall favorable, in particular for fixed rates, with decreasing indices driven by the decrease in the IRS.

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