THEtrend reversal on the rates of mortgages and Loans we had already started to see it in December, but in this first glimpse of 2024 the situation is taking on greater consistency. Since last December the mortgage applications they grew by 37,8%, but above all they are the Loans to lead the market, with continuously expanding demand after a year of consolidation: compared to January 2023, personal loans grew by 10% and finalized loans by 16,8%. The data emerge from the Trends&Insights Italian credit report by Experian, the world's global information company, for January 2024.
“The first survey of the new year bodes well for the credit market. As regards the Loans, after some physiological oscillations during 2023, one is now evident stable growth of demand compared to last year,” he says Armando Capone, general manager of Experian Italia. “Demand for mortgages could find a new boost in the coming months thanks to the sharp slowdown in interest rate increases: according to estimates from our observatory on the rates actually applied, a downward trend is confirmed for rates on mortgages and finalized loans ”.
Mortgages, finalized loans up by 13,4%, personal ones at +53,9%
Il 2024 it starts in a decidedly positive way for i Loans: +13,4% for i finalized and +53,9% for i personal compared to December, says Trends&Insights. Compared to January 2023, finalized loans grew by +16,8% and personal loans by +10%. Having concluded the recent holiday period, which had seen a shift in consumer spending towards mobile phones, household appliances and technological devices, cars return to being the main reason for financing, representing 43% of the total requests for finalized loans.
Mortgages, fixed rate sharply decreasing
The trend in rate quotations reflects the expectations of the next moves by the ECB which, although fluctuating, are positioned for a cut of 100/125 basis points compared to current levels (4,50% for the main rate, 4,00 for the deposit rate). The future on the 3-month Euribor rate in fact indicates a level of 2,83%, although rising (due to the influence of recent expectations on US rates) from the level below 2,50% indicated in recent weeks.
But it is particularly notable the sharp decline in the reference rate for the fixed rate mortgage who bets in advance on monetary workouts. The Eurirs in fact, from October to January it fell by 80 basis points and today the price is below 2,70% on average (ranging from 2,74% for a 10-year mortgage to 2,52% for a 30-year mortgage)
Mortgages, how much you save with subrogation
The sharp drop in rates certainly translates into a increase in mortgage applications, but above all in a clear growth of subrogation questions: in fact, those who had taken out a variable rate mortgage in 2022 or at the beginning of 2023 can find significant savings (also calculated on 100 euros per month) by switching to fixed rates. “Since the beginning of the year, requests for new mortgages received by the bank have increased by 40% compared to a year ago, but those for subrogation have actually doubled” said David Scala, head of mortgages at Intesa Sanpaolo.
It is true that if interest rate expectations are falling, rates on adjustable rate mortgages will also fall. But the opportunity of these discounted fixed rate levels should not be missed. Also because, however, you can always resort to the subruga again (which is free by law), if the official rates were to fall more than expectations: in that case you could switch to another more convenient fixed rate or to a variable rate.
Mortgages, Intesa Sanpaolo offers a subrogation discount
Intesa Sanpaolo launches a new one in the field of surrogacy promotional campaign: to those who want to change the current loan with a more convenient fixed rate one, it offers a discount of 40 basis points (0,40%) compared to the interest rate of one taken out now. “The new promotional campaign is destined to continue in the coming months, unless of course rates start to rise again” says Scala. The only condition is that the residual debt is not less than 100 thousand euros, also because "below this threshold the discount would be insignificant" she adds. The benefit is then amplified if the subrogation is combined with a green mortgage “which represent 20% of those disbursed by the bank, are those referring to the purchase of a house in energy class A or B”, continues Scala. Finally, benefits also for young which, again for green mortgages, even if not linked to subrogation, can access a rate of 3,05% on the 25-year maturity.
Mortgages, there are those who also think of the Scrooges of the real estate market
The project has been launched Luxforsale Finance, mortgage service designed for the high spending customer. 24Finance Mediazione Creditizia Spa, a credit brokerage company that belongs to the Holding 24Investment Srl (of which 60% was taken over by Ifin Holding Srl of the Spallanzani Group) and Luxforsale, a luxury hub in the Real Estate sector, presented the idea.
The signatures of the agreement are Rino Moscariello, founder and Sole Director of 24 Finance, and Claudio Citzia founder and CEO of Luxforsale. The objective is to fill a void in the high-profile customer segment given the growing trend of international customers attracted to real estate investments in Italy, increasing the specific skills of the respective networks and creating dedicated services and products with some banking institutions, they say.
Luxforsale Finance can be "useful to real estate agencies to facilitate the purchase and sale of luxury properties, advantageous for the banking system to approach customers with interesting economic capabilities, but above all we are convinced that it is a significant benefit for the end customer, especially if foreign" said Claudio Citzia. “Often the decision not to purchase a luxury property is determined by excessive bureaucracy and the difficulty in accessing credit.”
According to Luxforsale's 2023 Observatory, visits by foreign visitors are increased by 20,62% compared to the same period in previous years. The main interested parties come mainly from the United States (3,33%), those from Switzerland, France and Germany are stable, while there is an increase in visits from emerging countries such as India and Middle Eastern countries (Saudi Arabia, Kuwait and the United Arab Emirates) . The Italian regions that generate the greatest number of visits are Lombardy and Lazio, driven by visitors from Milan and Rome.
