Only 16,420 mortgages were taken out in February, 33 percent less than in the same month a year earlier, the figures from Spain's national statistics agency show.
That year-on-year drop is also larger than the 32.4 percent fall clocked up from January 2013 to 2014.
The average value of the mortgages signed in February 2014 was €102,4443 ($142,0009), or 1.1 percent lower than a year earlier the INE said.
SEE ALSO: Spain's most expensive streets: The Local Gallery
Friday's news comes in the wake of a very poor showing for Spanish property sales in February.
Those sales were down 27.4 percent on a year, while sales of new homes plummeted 37.4 percent in the same period.
Sales to foreigners, meanwhile, are on the up. These hit a nine-year high in 2013 as non-Spaniards opened their wallets to the tune of €6.45 billion ($8.95 billion).
Brits snatched up 15 percent of those properties as foreign buyers jumped onto bargains in the Spanish housing market.
Don't miss stories about Spain, join The Local on Facebook and Twitter
Member comments