Business · Economy · 5 hrs ago
Spain expected to sign 500,000 mortgages for second year in a row
Spain is expected to sign 500,000 home mortgages this year, the highest total in nearly 20 years and the same as last year.
In the first seven months, 303,000 mortgages were signed, 5.4% more than in the same period a year earlier.
Rising home prices are pushing up the average loan, which has increased by about €17,000 to €180,785.
The main pressure on the market is a shortage of homes, with Spain estimated to need one million more than it has.
The Bank of Spain says there is no current risk of a housing bubble, pointing to lending standards and household debt levels, and home prices remain 18% below their 2007 level after inflation.
Bankers expect higher interest rates to slow mortgage activity in 2027, with rates potentially reaching 3.5% to 4% in the coming months.
Spain is expected to end the year with 500,000 signed mortgages, matching last year’s total, according to the Spanish Mortgage Association.
That would be the highest annual total in almost 20 years.
Rising home prices are making it harder for some potential buyers to afford a purchase.
Bankers expect the mortgage market to slow clearly in 2027 as interest rates rise.
The Bank of Spain says there is no risk of a housing bubble, citing lending standards and household debt levels.
- Who
- The Spanish Mortgage Association expects the total, while Spanish banks are making the loans.
- What
- Spain is expected to record 500,000 signed mortgages for the second year in a row.
- When
- This year; the article was published on October 16, 2026.
- Where
- Spain.
- Why
- The Spanish Mortgage Association expects mortgage lending to remain strong, while bankers say rising interest rates will slow the market in 2027.
This story does not have two clearly opposing sides.
Spain recorded 500,000 signed mortgages, according to the Spanish Mortgage Association.
303,000 loans were made to buy homes, 5.4% more than in the same period a year earlier.
The Spanish Mortgage Association expects 500,000 mortgages to be signed.
Bankers expect the mortgage market to slow clearly as interest rates rise.
- Expected mortgages this year
- 500,000
- Mortgages last year
- 500,000
- Home-purchase loans in first seven months
- 303,000
- Year-on-year change in first seven months
- 5.4% increase
- Average mortgage amount
- €180,785
What people are saying
Spain is on the verge of a change in trend.