The latest figures from Spain’s National Statistics Institute show the mortgage market kept climbing in June.
Registries recorded 45,907 transactions, up 10.8% from a year earlier, while the average loan size hit €178,365, a 6% rise.
Overall credit extended reached 8.188 billion euros, marking a 17.5% increase and indicating that financing is growing faster than the number of deals.
“The key figure is not the number of mortgages, but the capital. Mortgages grow 10.8% and the amount lent 17.5%. When credit grows faster than transactions, it means that ever higher prices are being financed,” explains Robin Decaux, spokesperson for Equito.
Interest rates stay below three percent
June’s new‑mortgage pool carried an average interest rate of just under three percent, specifically 2.96%, while borrowers typically signed up for a repayment horizon of 25 years. This combination of low cost and long amortisation periods contributes to a financing environment that feels relatively steady compared with earlier, more volatile cycles.
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Fixed‑rate products dominated the market, representing 61.7% of all agreements, whereas variable‑rate contracts accounted for the remaining 38.3%. The initial rate offered on fixed‑rate mortgages was 2.89%, slightly lower than the 3.07% starting point for variable‑rate deals, showing why many purchasers favour the predictability of a locked‑in cost.
Adjustments to existing mortgages also tapered off sharply. The total number of registrations that involved any change in conditions fell by 19.1% year‑on‑year, and the subset of “novations” – where borrowers renegotiate with the same lender – dropped by a further 25.3%. Moreover, 83.1% of all recorded modifications were linked to interest‑rate revisions, indicating that those who needed to refinance have already acted.
Geographically, the surge was far from uniform. The Canary Islands posted the strongest expansion, with a 31.4% rise in new mortgages, followed by Castilla‑La Mancha at 23.2% and the Valencian Community at 16.1%. In contrast, the Balearic Islands, Cantabria and Galicia each experienced double‑digit declines, while Catalonia’s growth lingered at a modest 2.7%, well below the national average. These disparities highlight how regional affordability and local market trends are shaping the flow of credit.
On a broader scale, the average mortgage amount continued its upward trajectory throughout the year, climbing roughly 9.8% in cumulative terms. This steady increase, together with the higher proportion of financing per transaction, points to a market where buyers are repeatedly required to tap larger pools of capital to secure a home.
Analysts interpret the picture as one of robust demand meeting a constrained housing supply. The surplus of credit relative to the number of deals, combined with the persistent rise in loan sizes, suggests that price pressures could intensify in the coming quarters, even as interest rates remain comfortably low.
