The number of signed home mortgages continues to grow at a strong rate in Spain in 2022, with an increasing number of buyers who see real estate as a safe haven in times of high inflation and uncertainty.
According to the latest figures published by the National Institute of Statistics (INE), the number of mortgages signed in February increased by 14.6% compared to the same month of 2021.
The statistical agency recorded the granting of 36,537 loans for home purchase in February throughout the country, a figure that is very close to the 36,702 mortgages signed in February 2020, just before the Covid-19 pandemic and the consequent restrictions sank the market.
With the increase in February, mortgages on homes in Spain add 12 consecutive months of year-on-year increases.
But not only does the number of signed mortgages increase, their average amount also grows constantly. In February, it increased by 7.6% year-on-year, reaching 141,752 euros. The total value of capital loaned for housing investment grew by 23.4%, to 5,179.2 million euros.
Interest rate
In home mortgages, in February the average interest rate was 2.52% and the average repayment term was 24 years. According to the INE, 26.2% of home mortgages were signed at a variable rate and 73.8% at a fixed rate. The average interest rate at the beginning was 2.09% for home mortgages at a variable rate and 2.68% for fixed rate mortgages.
Spanish experts in the real estate market point out that the number of signed mortgages continues to grow, but at a slower rate than in previous months. However, they also highlight that the number of home sales is growing above the number of mortgages signed.
According to the experts, this indicates that more and more investors are buying homes in Spain, paying in one lump sum and using the homes as a safe haven for their money, with a view to renting or reselling them in the future.
