In a modest office in Madrid, loan officer Ana Ruiz signed the last of 43,372 mortgage agreements on a July afternoon, noting the paperwork felt lighter than the same month a year earlier.
Decline in mortgage count
The Spanish mortgage market recorded 43,372 new loans in July, a 3.5% drop from July 2024. The decline represents roughly 1,500 fewer contracts compared with the same period last year, according to data released by the Bank of Spain.
Average loan amount reaches new peak
Despite fewer transactions, the average mortgage amount rose above €180,000, setting a fresh record for the month. Analysts said the rise reflects continued demand for higher‑priced properties and tighter credit conditions that push borrowers toward larger, longer‑term loans.
Historically, July is a low‑season month for mortgage activity. Yet the 2025 figure ranks as the second‑highest July volume in the past 16 years, underscoring the market’s resilience after a rapid expansion cycle earlier in the year.
Bank of Spain officials warned that the slowdown could signal the end of the growth spurt, but they noted the elevated average loan size may sustain overall credit exposure. Market observers expect lenders to monitor borrowing trends closely as Spain heads into the autumn housing season.