The Spanish mortgage market has hit a pause button, with new loan approvals contracting slightly in May after nearly 24 months of consecutive growth.
The total number of mortgages granted fell by 0.1% compared to the same period last year, settling at 42,213 loans.
This marginal decline marks a clear break from the expansionary trend that has characterized the sector since late 2024, suggesting that the cumulative impact of higher interest rates is finally weighing on household borrowing capacity.
The slowdown in mortgage activity reflects a broader normalization in the Spanish housing market.
While prices have remained resilient, the volume of transactions has softened as buyers adjust to a more expensive financing environment.
The data indicates that the market is reaching a new equilibrium where affordability constraints are beginning to offset pent-up demand.