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Spain’s Mortgage Market Extends Rally With February Loans Up 16% to Highest Since 2011

Stable rates near 2.9% are steering borrowers to fixed terms with bigger loans.

Overview

  • Spain registered 45,563 home mortgages in February, up 16.3% from a year earlier in the strongest February since 2011 after 20 straight monthly gains.
  • The average interest rate on new mortgages was 2.88%, with fixed terms chosen in 64.8% of cases and an average term of 25 years.
  • The typical loan size rose 11% to €173,280, while total capital lent climbed 29% to more than €7.895 billion.
  • Growth varied by region, with Madrid up 36.9%, Castilla-La Mancha up 29.5%, and Andalusia up 24.7%, while Extremadura, the Basque Country, and La Rioja declined.
  • Fewer borrowers changed loan conditions, as registry modifications fell 9.3%, suggesting less incentive to switch or renegotiate existing mortgages.