Spanish house prices increase

November 22, 2007

The Spanish government predicted yesterday that house prices would grow at a rate of 4 percent in the last quarter of 2007, down from 5.3 percent in the third.

However, the director general for housing policy, Rafael Pacheco, said that the adjustment "was necessary" for the sector.

The third quarter also saw a 30-percent fall in the number of mortgages compared to the same period for 2006, according to estimations from the Mortgage Association based on figures from the Bank of Spain.

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