Home mortgage signings soar 41.2% as property market shows signs of strong recovery

The number of personal mortgages for homes, i.e. not commercial, soared by 41.2% in June compared to the same month of 2020, with 37,961 loans approved in Spain, according to data released this Friday by the National Institute of Statistics (INE).

This is the fourth consecutive month that there has been a year-on-year increase, after the rebound of 35.1% experienced in March, as the property market shows signs of a strong recovery.

According to the INE, the average value of mortgages constituted on homes increased by 5.5% in June to 140,456 euros, while the capital loaned grew by 49%, to 5,331 million euros.

In a month-on-month rate (June over May), mortgages on homes increased by 7.8%, while capital borrowed grew by 13.3%.

In June, the average interest rate for all mortgage loans stood at 2.34%, with an average term of 24 years. In the case of homes, the average interest was 2.28%, with an average term of 25 years.

38.8% of home mortgages were established in June at a fixed interest rate, while 61.2% were signed at a variable rate. The average interest rate at the beginning is 2.05% for variable-rate mortgages and 2.81% in the case of fixed-rate mortgages.