MORTGAGE SIGNINGS IN SPAIN REACH THEIR STRONGEST GROWTH IN RECENT YEARS

The Spanish mortgage market is experiencing a period of remarkable dynamism. In June, home loan signings rose by 31.7% year-on-year, reaching 41,834 operations, the highest figure so far this year and marking twelve consecutive months of growth. Despite this milestone, experts warn that the trend will not lead to greater accessibility or lower housing prices in the short term.

Average interest rates remain close to 3%

According to data published by the National Statistics Institute, the average interest rate stood at 2.99% in June, slightly above the previous month. Although still below the levels of the past two years, it is edging once again towards the 3% threshold. Fixed-rate mortgages dominated the market, representing 72% of new contracts, while only 28% were variable-rate.

Higher loan amounts and capital granted

The rise in property values is evident in the average mortgage amount, which reached €168,363, up 15.5% from a year earlier. The total capital lent surpassed €7 billion, an increase of over 50%. Meanwhile, the average repayment period remained stable at 25 years, signaling continuity in loan structures despite higher property prices.

Pressure on the housing market

The imbalance between supply and demand continues to push prices higher in both sales and rental markets. With fewer properties available, affordability remains a challenge. Surveys reveal that three out of four Spaniards now prefer to take on a mortgage rather than face today’s high rental costs, reinforcing the cultural perception of homeownership as a safer investment and a form of long-term wealth.

Outlook for the end of the year

Industry experts forecast that 2025 will close with record figures for mortgage activity. The combination of relatively low rates and rising prices makes buying attractive for many households, but at the same time fuels a cycle of increasing costs that further limits access for those with fewer savings. Analysts agree that accessibility will remain a key challenge, with no short-term price correction in sight.

In summary, the Spanish mortgage market is experiencing exceptional growth, with solid demand and higher property values. Yet, this strength also highlights the paradox of an increasingly expensive housing market, where owning a home remains both a cultural aspiration and a strategic investment.