Slow decline in Spanish Mortgage Market: Average Interest Rates Continue to Rise

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

The Spanish mortgage market started the year with a slight decline in activity, recording 33,128 loans in January 2024, according to data from the National Institute of Statistics (INE) published on Tuesday. Despite this, the focus remains on the average interest rate, which has been steadily rising and is now at its highest point since December 2014.

This marks the 12th consecutive month of negative growth for mortgages in Spain. However, it is worth noting that this decline is less pronounced compared to the previous month. The average amount of mortgages on homes decreased by 2.7% year-on-year in January to €138,149, while the capital lent decreased by 12.7% to €4,576.5 million euros.

The average interest rate for home mortgages in Spain was 3.46%, with an average term of 24 years. This was influenced by the rate policy of the European Central Bank (ECB) and the evolution of the Euribor. Approximately 42% of mortgages were at a variable rate and 58.2% at a fixed rate. The average interest rates for variable and fixed rate mortgages were respectively 3.24% and 3.64%.

In terms of monthly changes, home mortgages increased by around 33% in January compared to December 2024, while the capital loaned increased by around

Leave a Reply