Mortgage Market in Spain: A Closer Look at the Numbers

Mortgages in Spain Experience 10% Drop and Highest Interest Rates in Nearly 10 Years at Start of Year

The mortgage market in Spain experienced a 10% drop in January compared to the same month in 2024, according to data from the National Institute of Statistics (INE) published on Tuesday. Despite this, the average interest rate for home mortgages continued to rise and reached its highest point since December 2014.

One of the factors contributing to this increase was the rate policy of the European Central Bank (ECB) and the evolution of the Euribor. In addition, about 42% of mortgages were at a variable rate and 58.2% at a fixed rate. The average interest rate for variable rate mortgages was 3.24%, while for fixed rate mortgages it was 3.64%.

Despite this decline, home mortgages increased by approximately 33% in January compared to December 2024, while capital loans also increased by 30.7%. This trend indicates a moderation in mortgage financing as stated by Beatriz Toribio, general secretary of the Association of Builders Promoters of Spain. It is expected that this trend will continue in the coming months as the European Central Bank is predicted to lower interest rates.

The regions with the most mortgages on homes in January were Madrid, Andalusia, and Catalonia, with some regions experiencing a decrease in home mortgages compared to the previous year. Changes in mortgage conditions have also decreased, with notable growth in entity changes. Overall, the number of mortgages on rural and urban properties decreased by 11.1% in January compared to the previous year, with a corresponding decrease in total capital granted for mortgage loans.

The mortgage market in Spain experienced a 10% drop in January compared to the same month in 2024, according to data from the National Institute of Statistics (INE) published on Tuesday. Despite this, the average interest rate for home mortgages continued to rise and reached its highest point since December 2014. One of the factors…

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