London–(business wire)–KBRA UK (KBRA) has released a study examining the housing and mortgage market in Spain. Spain’s housing and mortgage markets have faced difficulties in recent years as the economy and banking markets struggled due to the financial crisis. KBRA notes that the current environment is different, with lower levels of building and housing leverage, higher rates of fixed-rate mortgages, improved unemployment and relatively low delinquency rates. Moreover, the housing and mortgage markets are better positioned than in the past and other European markets to face the challenges of a rising interest rate environment and cost of living concerns. In this report, KBRA examines the various dynamics underpinning the relatively improved health of the Spanish housing and mortgage market.
The housing market is recovering modestly as home prices rise, but remains below previous peaks.
Low levels of development and reduced overhangs from previous crises support housing values.
Moderate levels of leverage and an increasing proportion of fixed rates support borrowers’ ability to navigate rising interest rates and cost of living challenges, but delinquency rates show early signs of rising from low levels.
click here View the report.
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