Home mortgage signings fall 3.5% in July, their biggest drop in 25 months, while the average amount reaches €180,785 and the rate exceeds 3%

29/09/2026 – ⏱ 4 min

This article is for informational purposes only and does not constitute investment advice or a recommendation of any kind.

Home mortgage signings in Spain recorded in July 2026 their biggest year-on-year fall in more than two years. According to the Mortgage Statistics of the National Statistics Institute (INE), published on 28 September, 43,372 mortgage loans on homes were formalised, 3.5% fewer than in July 2025 and 5.5% fewer than in June. It is the first year-on-year fall after the June advance, when signings had grown 10.8%, and the biggest decline since June 2024. The figure comes in a context of rising interest rates and house prices at record levels, two factors that affect households' borrowing capacity.

The July figures: 43,372 mortgages and 7,841 million lent

The total capital lent in home mortgages came to 7,841 million euros, 7% more than in July 2025, even though the number of transactions fell. The explanation lies in the average amount: 180,785 euros per mortgage, 10.9% more than a year earlier and the highest value in the INE's historical series. In the cumulative total for the first seven months of 2026, the number of home mortgages is up 5.4% and the capital lent is up 15.8%, so the July fall interrupts a path of annual growth but does not reverse the year's overall balance.

The average rate exceeds 3% after 18 months below it

The average interest rate on home mortgages stood at 3.01% in July, five hundredths above June and the highest level in 14 months. It is the first time in 18 months that the average has exceeded 3%. By type of product, 62.3% of transactions were signed at a fixed rate, with an average interest rate of 3.03%, and the remaining 37.7% at a variable or mixed rate, with 2.97%. It is the eleventh consecutive month in which fixed-rate mortgages exceed 60% of the total. The average term was 26 years. This development comes after the European Central Bank raised rates by 25 basis points on 10 September and after the 12-month Euribor closed September at an average of 3.251%, according to data published by the Banco de España.

An uneven regional map

The differences between regions are wide. The biggest year-on-year falls are in Cantabria (-26.9%), Aragón (-20.5%), La Rioja (-19.7%), the Canary Islands (-18.4%) and the Basque Country (-16%). On the other side, only three regions are growing: the Balearic Islands (+8.6%), Asturias (+8.1%) and Galicia (+7.1%). Such dispersion is common in a statistic based on property registry entries, in which calendar changes and the weight of each market can amplify variations in territories with a lower volume of transactions.

Loan modifications: 10,926 transactions

The INE also counted 10.926 modifications to the terms of existing mortgages in July, 18.6% fewer than a year earlier. Novations fell 19.3% and debtor subrogations 19.6%. After the months in which rising rates drove changes of terms, the indicator is falling back in a context in which the gap between the current rate and the new-business rate is smaller.

How analysts interpret it

Juan Villén, head of mortgages at idealista, has described the figure as a sign of “a clear change of cycle”, attributed to the high level of house prices and the rise in rates, and has warned that further rate increases are expected. This reading matches that of other indicators published in recent weeks: home sales fell 5.1% in July, according to the INE, and prices remain at their highs in the main valuation indices. With a larger down payment and a higher instalment, part of the demand finds it harder to obtain financing.

Why this matters to the real-estate investor

Mortgage credit is one of the channels through which monetary policy is transmitted to the residential market. An average rate above 3%, together with an average amount of 180,785 euros, raises buyers' monthly effort and may shift part of the demand towards rental, in a market where rental supply is limited. For developers and financiers of residential projects, the cost of bank financing influences margins and project timelines, and it is one of the reasons why alternative financing formulas, including regulated crowdfunding, form part of the debate on how housing is financed. This is a dynamic observed in the data, not a recommendation.

Reading with caution

The INE statistic is compiled from entries in the property registries, so it captures transactions signed in earlier months and its lag with respect to the actual signing date can distort the monthly comparison. A single month does not define a trend, and the July data may be revised. Past results are no guide to future ones, and any real-estate investment carries risks of illiquidity, default and total or partial loss of capital. At European level, the activity of crowdfunding platforms is governed by Regulation (EU) 2020/1503 and, in Spain, by the implementing rules and supervision of the CNMV.

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