Goodbye dear mortgages, after a record-breaking 2023 the decline begins. Codacons: savings of up to 804 euros per year


By John

A sigh of relief for borrowers: interest rates on housing loans are starting to fall, after two years of constant increases following the ECB's monetary policy decisions. Compared to the record reached last November, when mortgage rates stood above 4.9%, today we are witnessing a generalized trend reversal affecting both fixed and variable rates.

According to Codacons, which has analyzed the trend in rates in the last period, those who today take out a fixed rate loan for the purchase of their first home find themselves with an APR between 2.7% and 2.8%, in marked decline compared to the 3.7% average of November 2023.

This equates to a lower monthly repayment, with savings of around 45 euros per month for a 30-year 100,000 euro mortgage, and 67 euros per month for a 25-year 140,000 euro loan. On an annual basis the lower expense will be 540 euros in the first case, over 804 euros in the second.

Analyzing the trend of rates on variable mortgages, today the best offer on the market for a 30-year loan of 100 thousand euros has an APR of 4.62% compared to 4.91% in November, and a monthly installment of 496 euros compared to to almost 513 euros four months ago, with a saving of 16.8 euros per month.

For a mortgage of 140 thousand euros over 25 years, the APR goes from 4.95% in November to 4.65% in April, with a lower cost of over 22 euros per instalment.

For the same amount, but with a thirty-year loan, the APR drops from 4.94% to 4.64%, equal to a lower monthly payment of 23.68 euros, and an annual saving of approximately 284 euros.

These are small positive signs which, however, are not enough to fill the gap determined by the sharp rise in rates recorded between 2022 and 2023 as a consequence of the continuous increases imposed by the ECB, with impacts which have reached a greater level for some types of mortgages. spending up to 5 thousand euros per year compared to the rates in force at the end of 2021, adds Codacons.

The consequences of the high installment have been disastrous on both the real estate and credit fronts: last year just under 710 thousand homes were sold in our country, with a drop of 9.5% compared to 2022.

The total share of homes purchased through the use of financing was just over 36%, the historic low, and the Crif risk center recorded a 24% decrease in mortgage requests and 24% in disbursements for 2023.

The stock of mortgages has thus fallen in our country from 426.2 to 423.5 billion euros, 2.7 billion euros less, with indirect negative effects on the construction, furniture and furnishings sectors, concludes the Codacons.