One of the main achievements that the Spanish banking after the rise in interest rates has been to maintain the default rate at historically low levels. The favorable evolution of the economy and the resistance of the labor market have blown in favor of this downward trend and pushes delinquencies to reach their lowest levels. According to the latest data published by the Bank of Spain (BdE)the default rate closed September at 3.43%, slightly below of 3.44% that it marked the previous month.
He approaches again 3.42% that reached Junecoinciding with the first cut in the price of money carried out by the European Central Bank (ECB). In a year-on-year comparison, the rate contracts a little more than one tenth from 3.56%, which translates into 1,627 million less doubtful balance, up to 40,454 million. The Euribor brake has contributed to this trend and gives respite to mortgage holders. It is worth remembering that the benchmark index of the mortgage market in Spain closed the ninth month of the year below 3%something that has not happened since the end of 2022.
The agency differentiates between the aggregate delinquency of banks, savings banks and cooperatives from that of consumer finance companies. In this sense, in the first case ended September at 3.32% and decreases in the same proportion as the general amount, although the amount rises slightly by 19 million and reaches 37,420 million. Compared to a year ago, it falls one tenth. In parallel, in the case of consumption, the rate experiences a decline of more than two tenths to 2.48%although the amount of unpaid debts only decreased by two million per month.
The vertical rise in the cost of financing more than two years ago put the banking sector on alert regarding a possible rebound in default, which ultimately has not occurred. The measures promoted by the Government to help those with mortgages in trouble have also contributed to containing this rate, which registered its peak last February, up to 3.62%. This behavior is recorded in full rebound in the granting of loans, which has been increasing by double digits throughout the year.
In fact, the demand for mortgage loans It has just experienced its best September since 2009 with the granting of 4,885 million in housing financing. In the same month fifteen years ago granted credits of this type worth 5,235 million. The difference with that time is that the bursting of the real estate bubble had already started to hit the economy and the financing cost was around the 1% barrier, while at the end of the third quarter it was 3.5%, 0.25% higher than what it is currently fluctuating.