Spain recorded 43,372 home mortgage signings in July, 3.5% fewer than in the same month of 2025. The average interest rate rose to 3.01%, its first reading above 3% since January 2025. It stood at 2.96% in June, ending a 17-month run below that level.
INE also recorded 61,417 home sales in July, down 5.1% from a year earlier, as mortgage activity slowed.
July brought the sharpest annual fall in mortgage signatures since June 2024, soon after the strongest June for mortgage lending in 16 years. Across the first seven months of the year, signatures were still 5.4% higher than a year earlier.
The average loan reached a record €180,785, up 10.9% from a year earlier, with a typical repayment period of 26 years. Total lending exceeded €7.84 billion. At the average market rate, the monthly payment comes to €836.14, with total interest of €80,091.
That is where borrowers can find savings.
Bayteca's September comparison lists Sabadell and Ibercaja's fixed mortgages at a discounted rate of 2.20%. On the same loan, the monthly payment would be €761.39, with total interest of €56,768.
The lower rate cuts the monthly bill by roughly €75. It also reduces lifetime interest by more than €23,000 compared with the INE average.
Unicaja's fixed offer stands at 2.25%, with a monthly payment of €765.88 and €58,171 in interest. CaixaBank's rate is higher, at 2.55%; its monthly payment would reach €793.19, with total interest of €66,690.
Even CaixaBank's offer is about €43 below the average monthly payment. The comparison says it requires only the direct deposit of a salary.
Fixed-rate loans remain borrowers' preferred choice. They made up 62.3% of home mortgages signed in July, while variable-rate loans accounted for 37.7%.
The average starting rate was 3.03% for fixed mortgages and 2.97% for variable loans. Borrowers seeking protection against higher payments continue to favor fixed products, though a lower discounted rate can still cut costs sharply.
The regional picture is uneven. The cooling in signatures also matches the pattern described in an earlier mortgage report.
Catalonia recorded the most home mortgages in July, with 11,169. Andalusia followed with 10,642, Madrid with 7,480, and the Valencian Community with 6,960.
Only seven regions recorded more mortgages than a year earlier. The Balearic Islands posted the strongest increase, at 8.6%, followed by Asturias at 8.1% and Galicia at 7.1%. Castilla y León rose 6.0%, Catalonia 4.9%, and Murcia 2.9%.
Cantabria saw the steepest fall, at 26.9%. Aragon followed at 20.5%, while La Rioja fell 19.7%.
The headline rate matters, but the lender's offer can matter more.
A borrower using the average terms pays €836.14 each month. The lowest fixed offers reduce that burden without changing the loan amount or the 26-year term used for comparison.
La Vanguardia links the rise in mortgage costs to the wider interest-rate setting and movements in Euribor, which affect the pricing of new loans. Mortgage volumes are weakening, while the average loan has reached a record level.
For households, the practical advantage lies in comparing offers closely. Analysts and real-estate portals describe the change as gradual moderation rather than a sudden halt in the housing market.
