Spanish Mortgages Hit Record Average, Transactions Slow

Spain's mortgage market has seen a slowdown in July, but the average loan amount reached a record high of €180,785. According to data from the National Statistics Institute (INE), 43,372 new home loans were registered in Spain last month, which is 3.5% fewer than a year earlier.

The average mortgage amount rose by 10.9% year on year as housing prices pushed borrowers to seek larger loans. The average interest rate on newly signed mortgages reached its highest level since January 2025 at 3.01%. This increase in rates is due to the European Central Bank's decision to raise rates for the second time since June.

The market is not collapsing, but it is becoming more selective and expensive. Financing conditions are adding to the strain on buyers, who are facing two changes at once: a decline in transactions and an increase in the amount needed for each purchase. Regional figures show that some areas, such as Catalonia, posted gains, while others, like Andalusia, saw significant declines.