Mortgages soar by 54.4% in May with fixed rates present in 70% of contracts.

Mortgages on homes experienced a 54.4% increase in the past month of May, reaching a total of 42,274 new operations in Spain. This growth, significantly higher than that registered in April (when the increase was 14.4%), means that the market has seen eleven consecutive months of increases in the granting of mortgage loans.

According to data published by the National Statistics Institute (INE), the average amount of mortgages for the purchase of a home rose to 158,153 euros, 12.7% more than in the same month of the previous year. This figure is the highest since February 2020 and the average agreed term reached 25 years in May 2025.

Regarding the interest rate, mortgages averaged 2.91%, almost a tenth lower than in April (2.98%). In fact, this rate has now remained below 3% for four consecutive months, a threshold that had not been breached for more than two years.

Regarding interest rate conditions, 69.9% of the mortgage loans signed in May were at fixed rates, the highest percentage observed since August 2022. These loans started with an average interest rate of 2.97%. Meanwhile, 30.1% of new mortgages were contracted at variable rates, with an initial interest rate of 2.78%.

Compared to April, the number of mortgages grew by 7.9% and the average amount of loans increased by 1.5%. In the first five months of this year, 201,423 mortgages have already been formalized, which represents an increase of 23.6% compared to the same period in 2024.

Juan Villén, general director of Idealista/mortgages, highlights that the figures for May reflect a positive evolution: the mortgage market remains dynamic, facilitated by the activity in home sales and the willingness of banks to grant loans, with stable interest rates and a boom in the fixed-rate modality, which provides security to both banks and buyers.

Looking ahead, Villén anticipates that no factors are foreseen that could halt the good streak of the mortgage market, so he expects the current trend to continue without major changes.

On the other hand, the profile of buyers is also evolving. María Matos, head of Research at Fotocasa, observes that among those seeking a mortgage, buyers who were previously deterred by high interest rates are starting to enter the market. According to Fotocasa Research, one in three young buyers are now encouraged to enter the market thanks to the new conditions. In addition, the segment of buyers with high solvency is growing, who need less financing due to their economic capacity.

Matos points out that in the coming months, the percentage of buyers choosing not to apply for a mortgage—currently at 31%—will decrease, as improved banking conditions incentivize financing. This means that pressure on the housing supply is increasing and, together with growing demand, is pushing prices upward.