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According to data published by the Banco de España, Spanish banks granted 42,610 million euros in new mortgage operations during the first half of 2026, marking a 3% increase compared to the same period in 2025. Despite the Euribor climbing from 2.08% to 2.79% over those twelve months and pushing toward the 3% threshold, borrower demand remained resilient during the first half of the year.
Mortgage Activity Peaks in June
June stood out as the most active month of the year for the Spanish mortgage market, with the value of new mortgages exceeding 8,000 million euros for the first time in 2026. According to industry data, the average mortgage interest rate reached 2.88% in June, up from 2.6% at the start of the year. Representatives from major lending institutions noted that high-income households continue to push forward with property purchases to secure financing before housing prices rise further, keeping demand elevated despite climbing credit costs.
Banking Sector Profits and Net Interest Margins
The steady climb in the Euribor and interest rates is set to bolster bank revenues over the medium and long term. According to financial analysts such as Pablo de la Torre of RBC, cited by Cinco Días, the European Central Bank’s monetary policy shifts are driving a repreciating asset trend that will gradually increase net interest margins across major institutions.
Housing Sales and Market Outlook
Housing transactions turned upward in June with a 1.6% increase, breaking a five-month streak of declines, according to sector figures. This uptick in property sales supported the sustained high volume of loan contracting. While macroeconomic pressures, including geopolitical tensions in the Middle East, have led some corporations to reconsider business investments, the domestic mortgage market enters the second half of 2026 with strong momentum and positive revenue expectations for the banking sector.
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