Balmaseda is the terminus for the Bilbao-Balmaseda train line, something to keep in mind if you are struggling to slice up these first kilometers into walkable sections.
Balmaseda has a very pretty old bridge with tower. In addition to the hotel I mentioned in the last post, it also has an albergue that takes pilgrims.
After Balmaseda, believe it or not, the País Vasco ends and the province of Burgos begins. The landscape becomes much less urban, lots of forests, nice dirt paths, and streams. This is not a stage of exceptional scenery, but it is very pleasant. Still not much elevation.