{"id":11503,"date":"2019-08-20T14:20:30","date_gmt":"2019-08-20T14:20:30","guid":{"rendered":"http:\/\/www.alessandropasqual.it\/mortgages-applications-slowing-sharply-in-the-first-half-of-the-year\/"},"modified":"2025-08-27T14:43:37","modified_gmt":"2025-08-27T14:43:37","slug":"mortgages-applications-slowing-sharply-in-the-first-half-of-the-year","status":"publish","type":"post","link":"https:\/\/www.alessandropasqual.it\/en\/mortgages-applications-slowing-sharply-in-the-first-half-of-the-year\/","title":{"rendered":"Mortgages, applications slowing sharply in the first half of the year"},"content":{"rendered":"\n

According to the latest Crif<\/strong> data compiled, applications for new mortgages<\/strong> in the first half of 2019 have gone through a definite slowdown<\/strong>, falling 9.4 percent compared to the same period last year.<\/p>\n\n

A figure that does not, however, come as a complete surprise. In fact, the slowdown in overall demand volumes<\/strong> is the legitimate child of the decrease in the component of mortgages with the purpose of subrogation<\/strong>: as we have already had the opportunity to remind you several times during the last monthly insights, those who had an interest in replacing their financing have largely already done so in the past few years, thus exhausting the push of subrogations on the overall figure. <\/p>\n\n\n\n

However, it would be too simplistic to determine the slowdown in applications for new mortgages<\/strong> to the turmoil effect alone (or, rather, to the disappearance of this effect): also playing a decisive role is a more cautious approach on the part of individuals and households, who in a climate of uncertainty such as the current one have evidently decided to postpone the decision to purchase homes with a mortgage until more favorable times.<\/p>\n\n

Rates still low, but spread widening on fixed<\/strong><\/h2>\n\n

This, moreover, is not the only highlight that emerged in Crif's semi-annual report. Indeed, it is quite interesting to note that the level of interest rates applied to mortgaged capital is still quite low, with the best offer spreads stable from January to July 2019. A rule that does not apply, however, to fixed rates<\/strong>, a context in which spreads grew at 0.6 percent-a development that end users probably did not realize, given that it was offset, in the same time frame, by a decline in IRS indices for the period of 0.7 percent. <\/p>\n\n

In short, \"final\" rates have remained stable, but what has changed are the components that build them: benchmark interbank rates have fallen, the remunerations demanded by banks in terms of spreads have risen.<\/p>\n\n

The above, translated into absolute terms, means that the current environment of credit conditions determines for a loan transaction of 140 thousand euros, with a term of 20 years, on a property value of 220 thousand euros, a level of the best spreads in July of 0.9% for variable rates, and 0.6% for fixed rates.<\/p>\n\n

Despite the growth in spreads on fixed-rate mortgages<\/strong>, the reduction in the IRS that we have mentioned has preserved the strong convenience of fixed-rate mortgages, which now take up nearly 65 percent of preferences on the online channel in the first quarter, and nearly 70 percent in the second quarter, in line with what had been found in the fourth quarter of 2019.<\/p>\n\n

Finally, with regard to the weight of demand for subrogation<\/strong>, between the first and second quarters the share suddenly rose from 34 percent to 39 percent: a surge that leaves subrogation in a strongly minority share compared to new transactions, but one that is probably fostered by a new awareness of the particularly favorable conditions now obtainable by taking out a mortgage with a certain and invariable rate.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to the latest Crif data compiled, applications for new mortgages in the first half of 2019 have gone through a definite slowdown, falling 9.4 percent compared to the same period last year. A figure that does not, however, come as a complete surprise. In fact, the slowdown in overall demand volumes is the legitimate […]<\/p>\n","protected":false},"author":2,"featured_media":7867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[254],"tags":[390,386,370],"class_list":["post-11503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-crif-data","tag-home-loans","tag-home-mortgage-rates"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts\/11503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/comments?post=11503"}],"version-history":[{"count":3,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts\/11503\/revisions"}],"predecessor-version":[{"id":11593,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts\/11503\/revisions\/11593"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/media\/7867"}],"wp:attachment":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/media?parent=11503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/categories?post=11503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/tags?post=11503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}