Spain’s mortgage market continues to show steady growth. In June 2025, the number of new home mortgage loans rose by 31.7% compared to the same period last year. Over the month, 41,834 deals were registered, marking the highest figure in the past twelve months of continuous growth.
Since the beginning of the year, the volume of mortgage transactions has increased by 24.9% compared to the first half of 2024. Banks issued loans totaling 7.04 billion euros, which is 52.1% higher than in June of last year. The average mortgage loan amounted to 168,363 euros, up 15.5% from a year earlier. This is the second-highest figure ever recorded, only behind February 2020.
The average interest rate on mortgage loans in June was 2.99%. This is slightly higher than in May (2.91%), but still below 3%, a level that has been maintained for five consecutive months. The highest rate during this period was recorded in January at 3.08%.
The average loan term is 25 years. Fixed rates continue to dominate the market: 72% of all new mortgages in June were arranged on these terms. This is the highest figure since August 2022, indicating borrowers’ drive for financial stability and predictable payments.
Growth in mortgage lending has been recorded in nearly all regions of the country. The only exception was Navarra, where a slight decrease in the number of transactions was observed—down 0.7% compared to last year. The largest increases were seen in Aragon (96.8%), Extremadura (65.3%), and Cantabria (63.3%). Significant growth was also noted in Murcia, Comunidad Valenciana, Castilla y Leon, Canarias, La Rioja, Galicia, Asturias, Castilla-La Mancha, and Catalunya.
More moderate growth rates were recorded in Baleares (12.5%), Madrid and Andalucia (both 20.6%), as well as in Pais Vasco (24%).
Experts point out that the ongoing growth of the mortgage market is linked to active bank policies and strong demand for housing. Despite rising property prices, interest rates remain relatively low, which maintains buyer interest. Fixed rates are becoming increasingly popular, providing additional stability for families and the banking sector.
The positive trend in the mortgage market is expected to continue in the coming months, provided the country’s economic situation remains stable and demand for housing does not decrease.
