Average mortgage interest charged by Spanish lending institutions eased slightly in December, dipping to 4.219%. This marks the lowest point since July, when rates stood at 4.186%. The figures come from Bank of Spain data compiled by the Spanish Mortgage Association (AHE) and released this week.
Because Euribor has been easing in recent months, the typical three-year mortgage loan for acquiring a free home in Spain declined for a second consecutive month. Despite the drop, the December rate remains roughly one percentage point higher than the 3.116% level seen at the end of 2022.
In December, the monthly rate for special mortgages shows a decrease of 0.057 percentage points compared with November. On the year, however, there was a substantial rise from December 2022, with a jump of 1.103 percentage points.
For euro area credit institutions issuing mortgages for free housing, the average rate for loans with maturities between one and five years stood at 4.310% in December, compared with 4.280% in November and 3.040% in December of the previous year. The trend mirrors the broader shift seen since early 2022.
The twelve-month Euribor index, which underpins most Spanish home loans, ended November at 4.022% and closed December at 3.679%, compared with 3.018% in December 2022.
Looking back at 2023, the average Euribor rate was 3.86%, while the average reference rate for the year finished at 3.99%. These figures help illustrate how evolving benchmark rates influence monthly mortgage payments for households across Spain. Marked references are provided by the Bank of Spain and the Spanish Mortgage Association, with data independently compiled to offer a clear view of lending conditions. (Source: Bank of Spain, AHE; compiled data and explanations follow.)