Spain's March mortgage market sees fewer loans in Canary Islands but record‑high total lending

Spain's National Statistics Institute (INE) reported that in March the number of new home mortgages fell 8.5% in the Canary Islands, dropping from 1,539 to 1,408 compared with a year earlier. Despite fewer transactions, the total amount of credit extended in the archipelago rose 17.3% to €223.6 million, with the average loan per dwelling increasing to €158,837 from €123,855.

Across the country, the volume of mortgages grew 9% year‑on‑year to 46,661 contracts, the strongest March since 2010. The total loan stock reached €8.125 billion, and the average mortgage amount rose 10.1% to €174,132. The average interest rate continued to hover just below 3%, at 2.84% in March, marking the longest stretch of sub‑3% rates since October of the previous year. Variable‑rate loans accounted for 36.2% of new mortgages, with the remainder fixed‑rate.

The report also noted that 10,549 mortgages changed conditions in March, a 28% drop from the same month a year earlier, reflecting a slowdown in renegotiations and sub‑rogations.