Mortgage market defies soaring house prices for best year since 2010
The average loan in November 2025 rose by 12% to 170,771 euros
The mortgage market is holding up in the face of soaring house prices - a factor that could, in theory, delay purchases.
In practice, however, Spain had already exceeded the total number of mortgages signed in 2024 by November 2025. The 463,232 loans signed by November represented a 17.8 per cent increase on the 425,522 signed during the previous full year.
Once the December data is released, 2025 is forecast to be the strongest year for mortgages in 15 years.
In November alone, 43,319 mortgages were signed, up 12.43 per cent.
"We have had very high and stable numbers for more than a year—around 40,000 mortgages per month," said Ricardo Gulias, CEO of RN Tu Solución Hipotecaria.
"The fact that November has once again seen double-digit growth shows that demand is still very active and that access to financing is stable, despite the slight upturn in interest rates, which, as we can see, no longer dominate house purchases."
Data from the National Institute of Statistics (INE) shows that the average interest rate on new mortgages reached 2.97 per cent in November, up from 2.81 per cent in October. This marked the first rise in five months following a pause in European rate cuts. Experts describe this as moderate growth, noting that rates remain at acceptable levels compared to the peaks of 2023.
Although some lenders have withdrawn from the mortgage boom as margins narrow, competition remains fierce. Banks are battling to capture strong demand, despite rising property values pushing the average mortgage to €170,771 in November.
According to the financial comparison site iAhorro, November was the second time in 2025 that the €170,000 threshold was exceeded.
"Evidently, this increase is directly related to the rising cost of housing, especially in large cities and areas with greater demand pressure," said experts at iAhorro. "Far from slowing operations, however, this shows that buyers still find mortgage financing a viable way to access housing."
A shortage of housing supply is also putting pressure on the market.
"Expecting that housing prices will keep growing and that financing conditions may worsen in the future, many buyers choose to purchase now, boosting the number of mortgages signed even in the last months of the year," iAhorro added.
