Mortgage activity in Spain has picked up again. In September, [number] mortgages were signed. 46.120 mortgages for home purchasesThis represents a 12,2% increase compared to the same month last year and confirms the positive performance of the residential market. It is the highest volume for a September in over a decade and the highest level for any month since October of last year, according to provisional data from the National Statistics Institute (INE).
This uptick occurs in a context where Interest rates remain contained And the demand for housing continues to show strength, both from families buying to live in and from those who see real estate as a safe haven for savings. The figures reflect a dynamic, but still cautious, mortgage market, in which lenders compete to attract the best profiles without significantly relaxing their risk criteria.
Mortgage numbers reach a decade-high level
According to the INE, the number of loans registered for the purchase of housing in September amounted to 46.120 transactions, 12,2% more in year-on-year terms. This figure makes September the best ninth month of the year since 2010 and consolidates a positive streak that is noteworthy: Mortgage lending has now seen 15 consecutive months of increases..
The boost in September is especially significant when compared to August's performance, which is traditionally weaker due to seasonality. Compared to the previous month, Mortgages on housing skyrocketed by 38,6%.Meanwhile, total loan capital increased by 40,2%. In other words, not only were more transactions signed, but they were also of larger amounts.
For the year as a whole through September, mortgage transactions maintained a solid pace: The number of mortgages for home purchases increased by 21,4%. This cumulative increase is due to a rise in lending capital of 37,5% and a 13,2% increase in the average loan amount. This combination suggests that larger sales are being financed and that buyers are taking out slightly higher mortgages than in recent years.
If the focus is broadened to include all registered mortgages on all types of properties (not just homes), the following were recorded in September 59.261 operations14,6% more than a year earlier. average amount of this set It reached 195.184 euros, with an increase of 14,2%, and the capital lent in the total number of properties rose to 11.566,6 million euros, which represents a year-on-year increase of 30,8%.
Average amount at its highest point and a sharp rise in loan capital
One of the most striking figures of the month is the evolution of the average mortgage payment, which rose 14,1% year-on-year to €171.612. This is the highest figure recorded for a September since 2010, a period in which such high amounts were rarely seen, highlighting the rising cost of homes being financed.
This increase in the average amount is directly reflected in the volume of financing granted. The Total capital loaned for home purchases exceeded 7.914 billion eurosThis represents a 28,1% increase compared to September of the previous year. The growth in capital is more than double the increase in the number of transactions, indicating that larger mortgages are being signed, in line with rising residential prices across much of the country.
In a month-on-month comparison with August, the average amount of mortgage loans for housing also increased, rising by 1,2%. Although this percentage seems moderate, it contributes to an underlying trend in which, according to various statistics, Housing prices have been steadily rising.especially in areas under strain or with a shortage of new supply.
According to the data accumulated from the first nine months of the year, the INE confirms that The capital lent grows by 37,5% And the average amount of mortgages granted increased by 13,2% compared to the same period of the previous year. Meanwhile, other sources, such as the General Council of Notaries, confirm this upward pressure, with increases in prices per square meter and in the average amount of loans for home purchases.
Interest rates contained and dominance of fixed-rate mortgages
In a scenario of rising housing prices, the evolution of interest rates It has become a key aspect of market accessibility. According to the INE, the The average interest rate for new mortgages on housing stood at 2,85% in September., slightly below the 2,89% recorded in August and the lowest level since January 2023, when it was 2,64%.
With this information, a chain of events follows. eight consecutive months with an average rate below 3%This is significant considering the previous period of monetary tightening. For many families, this environment of moderate interest rates is helping to cushion the impact of rising housing costs, although mortgage payments remain demanding in certain markets.
Regarding the structure of the loans, Fixed-rate mortgages remain the predominant optionIn September, 60,6% of new mortgages for housing were signed at a fixed interest rate, compared to 39,4% that opted for a variable rate (a category in which the INE also includes mixed-rate mortgages). This preference for a fixed rate reflects the desire of many buyers to protect themselves against possible future increases in benchmark interest rates.
If the cost is analyzed by modality, the average interest rate at the start was 2,89% for the variable rate mortgages and 2,83% for fixed-rate mortgages, a very small difference that, in practice, reduces the incentive to assume the risk of future Euribor fluctuations. This narrow margin, combined with competition among institutions, partly explains why fixed-rate mortgages continue to lead in new transactions.
The financial sector emphasizes that, despite the competitive competition to attract mortgages, institutions are maintaining a degree of caution. Market sources indicate that banks are concentrating their most aggressive offers on profiles with stable income and greater borrowing capacityThis leaves some of the most vulnerable demand out of the best conditions.
Territorial differences: all autonomous communities are up, with a particularly strong increase in the north
The 12,2% growth in the signing of home mortgages has been widespread throughout the country. All autonomous communities registered year-on-year increases in SeptemberHowever, the intensities varied considerably. The most pronounced variations were located in the north and in some inland regions, while in other territories the increase was more moderate.
The highest annual growth rates were recorded in La Rioja (33,9%), the Region of Murcia (30,5%) and Cantabria (27,3%)All of them with increases above 25%. Also noteworthy, with increases exceeding 20%, were communities such as Aragon, Navarre, Extremadura and Asturias, reflecting strong dynamism in the signing of loans for home purchases.
In a second tier were territories such as Galicia, with an increase of 18,5% In terms of the number of mortgages on housing, the Balearic Islands (17,6%), Catalonia (15,3%), the Basque Country (13,1%), and the Valencian Community (13%) stand out. In these regions, the positive trend in mortgage activity is combined with very different residential markets, ranging from tourist areas with strong price pressure to industrial or consolidated urban areas.
Below the national average of 12,2% are communities such as Madrid (9,9%), Castilla-La Mancha (6,5%), Andalusia (6,3%), Castilla y León (1,7%) and The Canary Islands, where the increase barely reached 0,2%.In the archipelago, the number of registered mortgages remained practically stable compared to the previous year, which contrasts with the surge observed in other autonomous communities.
The case of Asturias illustrates the market shift after the summerIn September, 724 mortgages were signed in the Principality of Asturias, a 21,7% year-on-year increase and the highest figure for a September since 2010. Compared to the previous month, mortgage activity surged by 46,9%. The total amount of new mortgages signed in Asturias reached €92,5 million, representing a 40,2% year-on-year increase and a 59,6% increase compared to August. In the first nine months of the year, the region has accumulated 6.548 mortgages, 20,3% more than in the same period of the previous year.
An active market, but more selective in granting credit.
The September reactivation has not gone unnoticed by professionals in the sector. Sources consulted highlight that, After the summer break, demand has returned with force.Both the number of transactions and the average mortgage size have increased, largely driven by rising house prices. Even so, the general tone is one of reasonable caution, with no signs of uncontrolled lending.
Various analysts suggest that Financial institutions are becoming more selective with the profiles they are targeting. According to some firms specializing in mortgage brokerage, banks are concentrating their offerings on buyers with relatively high salaries, job stability, and the ability to contribute savings, especially in cases where up to 80-90% of the property value is financed.
In this context, one also observes a decrease in the number of mortgages that modify their conditionsIn September, the total number of loans with registered changes fell by 11,2% year-on-year. Novations, that is, modifications agreed upon with the same lender, decreased by 29,9%, while creditor subrogations (change of bank) fell by 30,2%. Conversely, debtor subrogations (change of borrower) skyrocketed by 88,9%, a trend that may be linked to purchase and sale transactions in which an existing loan is assumed.
Of the 13.076 mortgages that changed their terms in September, the 80,3% responded to changes in interest ratesThis figure reveals that, although the wave of changes seen during periods of higher interest rates is no longer being experienced, there is still a significant number of borrowers adjusting their contracts to better adapt them to the current financial situation.
Meanwhile, other market indicators highlight that Home sales continue at high levels And that a significant portion of these transactions are financed through mortgages. Recent notarial data places the percentage of purchases with mortgage loans at around half of all transactions, with the financed amount averaging slightly more than two-thirds of the property's value.
Brick as a refuge and the challenges of housing accessibility
The continued increase in mortgage signings, coupled with the rise in the average loan amount and the stability of interest rates, reinforces the idea that Buying is still seen as a form of protection In an uncertain economic climate, many households continue to see buying property as a way to protect themselves against inflation and the volatility of other financial products.
Real estate experts emphasize that The evolution of supply and demand will be key to determine if this trend continues. Rising prices, especially in large cities and coastal areas, are straining the ability of some people to afford housing, while the supply of new housing is growing at a limited pace in several local markets.
At the same time, there are voices warning that the improvement in mortgage statistics coexists with real difficulties for certain groupsYoung people with unstable contracts or low salaries find it more difficult to accumulate the necessary savings for a down payment and meet the solvency requirements demanded by banks. This gap between potential demand and the demand that ultimately accesses financing is one of the main challenges in the medium term.
The European Central Bank's monetary policy, which for now points to a phase of relative stability in the typesThis could help the mortgage market maintain some dynamism in the coming months, although analysts anticipate that growth rates may moderate after the strong surge of recent quarters. The key will be how this financial environment interacts with developments in employment, wages, and the actual supply of homes for sale.
The latest data from the INE paints a picture in which The signing of mortgages on housing is growing stronglyAverage loan amounts are rising and interest rates are remaining within a relatively comfortable range, while the autonomous communities are showing almost universal progress. The mortgage market is very active, although increasingly demanding in terms of buyer profiles, reflecting both the enduring appeal of real estate and the growing pressures on access to housing across much of Spain.
