Mortgage approvals surge by 10.8% in June

New mortgage agreements rose to 45,907 in June as total lending reached 8,188 million euros despite rising interest rates.

Mortgage approvals rose significantly in June, with 45,907 new agreements signed. This represents a 10.8% annual increase and an 8.8% rise from May. Total lending reached 8,188 million euros for the month, marking a 17% surge compared to the previous year.

The average mortgage stood at 178,365 euros with a 25-year term. Fixed rates were chosen by 61.7% of borrowers at an average of 2.89%, while 38.3% opted for variable rates at 3.07%. The closed June at 2.79% before exceeding 3% in August this year.

Regional performance varied as the Canary Islands saw a 31% increase, while the Balearic Islands recorded a 10.4% decline. With 259,681 mortgages signed in the first half of the year, the market shows a 7% growth despite the ECB raising rates to 2.25% in June.