Spain’s Mortgage Financing Takes a Hit: Average Interest Rates Rise to Their Highest Point in Years

Mortgages in Spain Experience 10% Drop and Highest Interest Rates in Nearly 10 Years at Start of Year

In January 2024, the mortgage firm in Spain recorded a 10% drop compared to January 2023, with 33,128 loans granted, according to data from the National Institute of Statistics (INE) published on Tuesday. The focus is on the average interest rate, which continues to rise and is now at 3.46%, the highest since December 2014.

The decline in mortgage financing in January marks the 12th consecutive month of negative rates, although it is a less pronounced drop compared to the previous month. The average amount of mortgages on homes decreased by 2.7% year-on-year in January to 138,149 euros, while the capital lent decreased by 12.7% to 4,576.5 million euros.

The European Central Bank’s rate policy and the evolution of Euribor have been responsible for driving up average interest rates for home mortgages in Spain. About 42% of mortgages were at a variable rate and 58.2% at a fixed rate. The average interest rate for variable rate mortgages was 3.24%, and for fixed rate mortgages was 3.64%.

In terms of monthly changes, home mortgages increased close to 33% in January compared to December 2023, while the capital loaned increased by nearly as much at around

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