The indicator has skyrocketed again on the expectation that the European Central Bank (ECB) will continue to raise interest rates to contain inflation.
The 12-month Euribor, the benchmark for most mortgages in the Spanish state, continues to rise strongly, soaring in August to an average interest rate of 1.249%, a record in more than a decade.
According to market data consulted by Efe, and in the absence of confirmation from the Bank of Spain in the coming days, the Euribor ended at 1.249% in August, a rate higher than the 0.992% it marked in July.
This increase will lead to another rise in the price of variable mortgage payments, as a year ago, in August 2021, the Euribor reached -0.4980%, close to the minimum reached in January of that year (-0.505%) .
For example, the loans to be revised with the August data become slightly more than 1,400 euros per year more expensive with an average mortgage of 150,000 euros, with a term of 25 years and an interest of the Euribor plus the 1%.
If the loan is 300,000 euros, with the same preconditions, the installment amount goes from 1,064 euros a year ago to 1,300 euros today.
This means an increase of about 2,800 euros more per year.
The indicator has skyrocketed again on expectations that the European Central Bank (ECB) will continue to raise interest rates to contain inflation (it reached a record 9.1% in the eurozone in August), and that it will do even more sharp.
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Source: EITB
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.
