Spain's home mortgages decrease by 23.3% in October

The number of home mortgages in Spain fell by 23.3 percent in October when compared with the same month in 2012, the National Institute of Statistics (INE) reported on Friday. The INE said that the number of home mortgages dropped to 14,704 in October, which meant that home mortgages have been declining for 42 consecutive months, showing the weakness of the real estate market after the housing bubble burst in 2008. On a monthly basis, the number of home mortgages dropped by 1 percent, the smallest fall in October since 2009. The number of home mortgages stood at 14,856 in September, a rise of 22.3 percent from August. The INE reported that the average value of home mortgages reached 103,246 euros (141,214 U.S. dollars) in October, a 2.5-percent increase in annual terms. The amount of capital loaned reached 1.518 billion euros falling by 21.3 percent year on year. Meanwhile, home mortgages decreased by 27.7 percent from January to October when compared with the same period in 2012. The amount of capital loaned dropped by 30.7 percent, while the average value fell by 4.1 percent. A total of 24,865 rustic and urban mortgages (which includes home mortgages) were granted in October according to the INE, a 20.6-percent decrease when compared with the same month in 2012. Spain's real estate sector has been seriously affected by the economic crisis since the housing bubble burst in 2008. Housing prices and mortgages have been decreasing for a long period of time that has also caused a high unemployment rate, making it difficult for people to buy a house and pay their mortgages. (1 euro=1.37 U.S. dollars)