Spanish Mortgage Approvals Decline for 14th Straight Month

 

Spain's National Institute of Statistics (INE) released data earlier on today reporting how the number of mortgages approved have fell for the 14th consecutive month in June of this year.

The INE's monthly report detailed how the number of mortgages granted in June fell sharply by 42.4% year on year, dragging down the figure's average monthly decrease in the first half of 2011 to 24.9%.

The June decline was even greater than that seen in May, when the figure dipped by 32% compared with to same period last year.

The whole of the country suffered a fall in figures during June, but the tiny inland region of La Rioja was affected worse than any other area in the country, witnessing a fall of 80.8% in the number of mortgages granted in comparison with June 2010.

Last week the government approved a decrease in sales tax from 8% down to 4% on new build homes in order to stimulate Spain's badly-hit housing market and the construction sector. The temporary tax cut would last until 31st December.