The mortgage market in Spain has started 2025 with a remarkable positive dynamic. According to data published by the National Statistics Institute (INE), 38,058 mortgages on homes were registered in January, representing an increase of 11% compared to the same month the previous year. This increase marks the seventh consecutive month of growth and is the best figure for a January in the last five years.
The average amount of mortgages taken out also rose significantly, standing at 152,233 euros, 11.9% more than in January 2024. This increase reflects both buyer confidence and the willingness of financial institutions to grant larger loans.
A key factor contributing to this upturn is the moderation in interest rates. In January, the average rate for residential mortgages fell to 3.08%, down from 3.25% in December. This level has not been observed since April 2023, suggesting a trend towards more favourable financing conditions.
As for the distribution by interest rate, 64.2% of mortgages were arranged at a fixed rate, while the remaining 35.8% opted for a variable rate. This preference for fixed-rate mortgages indicates a search for stability on the part of mortgage holders in the face of possible future fluctuations.
At regional level, Andalusia led the number of mortgages taken out on homes in January, with 7,474 operations, followed by Catalonia (6,936), Valencia (5,033) and Madrid (4,456). Although the latter is among the regions with the highest activity, it experienced a year-on-year fall of 29.1%. In contrast, regions such as La Rioja, the Canary Islands and Aragon recorded the highest percentage increases in mortgage signings, reflecting the territorial heterogeneity of the market.
The rural property segment also showed signs of growth. In January, 767 mortgages were signed on this type of property, 8.8% more than in the same month of the previous year. The capital loaned amounted to 162.7 million euros, a year-on-year increase of 18.4%. The regions with the highest activity were Andalusia (180), Valencia (109) and Castilla-La Mancha (99).
In parallel, mortgages with changes in their conditions increased by 19.2% with respect to January 2024. Renewals - modifications with the same financial institution - grew by 10.1%, while subrogations to the debtor (change of ownership) experienced an increase of 649.7%. On the other hand, subrogations to the creditor (change of financial institution) fell by 62.8%.
This positive start to the year in the Spanish mortgage market suggests a sustained recovery and dynamism in the real estate sector, driven by more accessible financial conditions and a steady demand for housing.