Business · Economy · 2 days ago
Rising rates make Spanish home loans more expensive
Mortgages in Spain are getting more expensive as interest rates and the Euribor rise.
In July, the average mortgage rate reached 3.01%, its first time above 3% in a year and a half.
Mortgage signings also had their biggest year-on-year fall in 25 months, according to official data.
At the same time, the average loan rose 10.9% to a record €180,785, as higher home prices mean buyers need to borrow more.
Fixed-rate mortgages made up more than 60% of new lending for 11 months, but their average rate also rose in July, to 3.03%.
Experts expect the Euribor to keep rising, with at least two increases anticipated, and advise buyers to compare fixed-rate offers rather than wait.
Some fixed-rate offers remain below 3.5% APR when customers meet the lenders’ requirements.
Rising euro-area interest rates and the Euribor are pushing up Spanish mortgage costs.
The average mortgage interest rate reached 3.01% in July, its first time above 3% in a year and a half.
The number of mortgages signed in July recorded its largest year-on-year fall in 25 months, according to Spain’s National Statistics Institute.
The average mortgage loan amount rose 10.9% to a record €180,785 in July.
Experts cited by Expansión advise buyers not to delay, as fixed-rate offers may become more expensive.
- Who
- Spanish homebuyers and mortgage borrowers are affected; banks are raising loan costs.
- What
- Mortgage costs are rising as the Euribor climbs, while mortgage activity has slowed.
- When
- The reported figures are for July; the article was published on 9 October 2026.
- Where
- Spain.
- Why
- Higher euro-area interest rates and a rising Euribor are pushing up mortgage costs, alongside high housing prices.
This story does not have two clearly opposing sides.
If the index settles near or above 3%, it is logical that fixed-rate offers will become more expensive toward the end of the year. For anyone looking for a home or considering improving their mortgage, waiting could prove costly.
We continue to see a market with active buyers and financial institutions willing to grant credit. The difference is that month by month we see how housing prices are forcing buyers to borrow more to complete the same purchase.
The average mortgage interest rate was 3.01%, up from 2.96% in June.
The average mortgage amount rose 10.9% to a record €180,785.
Expansión reported rising mortgage costs and said the Euribor was pricing in at least two rate increases.
- Average mortgage rate in July
- 3.01%
- Average mortgage rate in June
- 2.96%
- Average mortgage amount in July
- €180,785
- Year-on-year change in average mortgage amount
- Up 10.9%
- Fixed-rate mortgage share
- More than 60% of mortgage contracts for 11 months
Sources
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