Spanish Mortgage Approvals Surge 54% in May as Lending Booms

Spanish housing finance accelerated sharply in May, with data from the National Statistics Institute showing mortgage approvals jumping 54.4% from a year earlier to 42,274 loans. Total mortgage lending expanded 48.8% year on year, while the average interest rate eased to 2.91%, marking a fourth consecutive month below the 3% threshold. Fixed-rate contracts represented about 70% of new mortgages, the highest share in almost three years, as borrowers locked in lower costs amid expectations that rates may rise later in the year. Earlier in the month, Bank of England figures indicated continued strength in the UK market. Mortgage approvals climbed to 63,032 in May, comfortably exceeding the 60,800 consensus forecast and April’s 60,500. Net lending secured on dwellings swung to a positive £2.1 billion after a £0.8 billion outflow in April, although consumer credit growth softened to £0.9 billion from £1.6 billion. The data suggest that, despite higher policy rates, demand for housing finance remains resilient on both sides of the Channel.