Spain's banks registered 43,372 home mortgages in July 2026, 3.5% fewer than a year earlier and 5.5% fewer than in June.
The average mortgage climbed to 180,785 euros, up 10.9% from a year earlier. That is a record for this data series, and close to 181,000 euros.
That is where buyers feel the squeeze.
Spain's National Statistics Institute, known as INE, reported that mortgage registrations fell at their sharpest pace since June 2024. At the same time, each completed purchase required more borrowed money.
Home sales are weakening too. INE recorded 61,417 property transactions in July, down 5.1% from a year earlier.
For buyers, the pressure has not eased.
Robin Decaux of Equito describes a market with fewer operations but no comparable drop in financing volume. Each deal now requires more capital, potentially shutting out people trying to buy their first home.
Yogi Thadhani, who leads Finteca in Spain, points to the shortage of homes for sale. He says it is pushing prices higher.
More than 62% of buyers are choosing fixed-rate mortgages. Ricardo Gulias, chief executive of RN Tu Solución Hipotecaria, also sees active buyers and banks that continue to grant credit. In his view, high prices are forcing purchasers to take on more debt for the same type of property.
Credit has not disappeared.
Ricard Garriga, co-founder and chief executive of Trioteca, describes demand as solid. He points to two factors that could slow the market over time: the recent rise in Euribor and an expected increase in fixed-rate mortgage costs.
The July figures show why financing costs matter. The average interest rate on mortgages secured against homes was 3.01%, with an average term of 26 years.
Variable-rate loans made up 37.7% of new mortgages. Fixed-rate agreements accounted for 62.3%.
The average starting rate was 2.97% for variable mortgages and 3.03% for fixed ones. Fixed financing led the market despite its slightly higher initial rate.
iAhorro reported the same rate structure. The Banco de España continues to publish Euribor and other reference-rate data in its monthly mortgage statistics.
Existing mortgage terms changed less often in July. The total number of mortgages with altered conditions recorded in property registers fell 18.6% year on year.
Novations with the same lender dropped 19.3%. Debtor subrogations fell 19.6%; creditor subrogations declined 3.8%.
Interest rates accounted for 82.0% of the 10,926 mortgages whose conditions changed. For borrowers, the basic issue is the cost of credit. The data do not point to a broad wave of ownership or lender changes.
The regional picture is uneven.
The Balearic Islands recorded the largest annual increase in home mortgages, at 8.6%. Asturias followed at 8.1%; Galicia posted a 7.1% rise.
The sharpest falls came in Cantabria, where mortgages dropped 26.9%. Aragon followed with a 20.5% decline; La Rioja fell 19.7%.
The market has not frozen. Credit remains available, and demand is still present.
Yet the average amount needed for a purchase keeps rising. Fewer mortgages are being signed, while loans behind completed deals are larger. That puts pressure on household borrowing capacity.
The figures support the concern raised by protesters in Madrid. Access to housing is restricted by the shortage of homes for sale and the size of the debt needed to buy one.
Idealista News described the figures as consistent with cooling activity amid expensive financing and high housing prices.
