At the end of last year this was -0.5%
The 12-month Euribor has made another jump, standing at 1.2% in daily exchange rates on Friday, after the European Central Bank (ECB) surprised with a higher-than-expected rise in interest rates. It is the market’s first reaction after the central bank’s announcement. So the ECB agreed to a higher price increase in money than it had been promoting in recent weeks, when several members of the Executive Committee indicated that the increase would be 25 basis points.
Experts have warned that this rate hike will affect the Euribor, which is likely to continue rising and make floating rate mortgages more expensive.
The rise of the Euribor has already been noticed a day after the ECB’s announcement. This Friday, the indicator stood at 1.2% in its daily rate, compared to 1.142% which marked the previous day. This is the highest daily level since early July 2012.
The index has thus been chained above 1% for six consecutive days, enabling us to anticipate that another monthly increase will be recorded and in July exceed the monthly figure of 0.852% recorded in June. With one week to go until the end of the month, the preliminary July average stands at 0.985%.
Due to the rise in the Euribor, variable-rate mortgages are becoming more expensive. According to the estimates of the real estate portal piso.com, there will be an average increase of about 1,400 euros per year per family, which means an increase in monthly mortgage payments of between 115 and 120 euros.
Most experts agree that the indicator will close above 1.5% this year and approach or exceed 2% in 2023, although several analysis and investment houses see the potential for Euribor to reach 2% in the next six months. reaches.
While the hike won’t affect fixed-rate mortgages, the comparator warns that those seeking to take out these types of products will have to accept higher prices than banks.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
