Mortgage lending records its best September since 2010 with 46,120 transactions

Spain’s mortgage market has now recorded more than a year of uninterrupted growth, confirming that access to financing has once again become a key driver of the residential sector. According to the latest figures from the National Statistics Institute (INE), mortgage lending rose by 12.2% year-on-year in September, reaching 46,120 transactions — the highest figure for that month in the past fifteen years.

This rebound is not an isolated event. September marks the fifteenth consecutive month of growth in mortgage lending, reflecting both resilient demand and an increasingly favourable financial environment. The average interest rate fell to 2.85%, its lowest level since January 2023, and has now remained below 3% for eight consecutive months — a critical threshold that is encouraging many buyers back into the market.

The year-to-date data reinforces this trend. In the first nine months of the year, the number of mortgages granted for home purchases increased by 21.4%, while the total capital lent rose by 37.5%. The average mortgage amount climbed to €171,612, up 14% year-on-year, indicating that growth is driven not only by transaction volume but also by higher property prices.

Several factors are behind this momentum. Falling interest rates are improving credit affordability, while rising house prices are pushing up the average loan size required to enter the market. Seasonal effects also play a role, as September typically absorbs transactions that could not be completed in August due to the summer slowdown.

From a regional perspective, Andalusia, Catalonia, Madrid and the Valencian Community account for the highest number of mortgages, confirming that activity remains concentrated in large urban and economically dynamic areas. However, year-on-year growth is widespread, with notable increases in regions such as La Rioja, Murcia and Cantabria, suggesting a broad-based recovery in mortgage lending.

Sector expectations for the end of the year remain strong. If current trends continue, total mortgage lending could approach 500,000 transactions by year-end — a level not seen in over fifteen years. This outlook is reinforced by intense competition among banks, which are actively adjusting conditions to attract new borrowers.

In this context, credit is flowing more smoothly, but within a housing market still under pressure from limited supply and rising prices. The result is a scenario where financing is more accessible, yet the overall financial effort required from buyers remains high — a key factor in understanding both the resilience and the growing selectivity of today’s housing market.