Moody’s credit rating agency has estimated that the price of housing in Spain will increase by 5% in 2016 as a result of the continuing recovery of the Spanish real estate sector, driven by better economic conditions and the lowest mortgage rates since 2011.
The agency explained that the low mortgage rates are due to increased competition in the banking sector, and some of the European Central Bank (ECB) interest rates recording historic lows, with the Euribor, the benchmark mortgage interest reference, standing at -0.013% at the end of May.
According to Moody’s, the number of mortgage defaults are also improving, standing last December below 4.8%, at a time when the average mortgage rate in April stood at 2.03%, its lowest level since 2012.
