For example, a variable mortgage of 150,000 euros with a term of 30 years and with a difference of 0.99% plus Euribor and for which the interest must be revised in July, will register a slight decrease in the repayment of 56.6 euros per month. This amounts to almost 680 euros per year.
The Euribor, the reference rate to which most variable rate mortgages in Spain are indexed, closed July at 3.526%, having already experienced four consecutive months of declines.
The July figure is 12.4 basis points lower than the 3.65% recorded in June. Likewise, it is 62.3 basis points below the 4.149% recorded a year ago.
In this way, the interbank reference rate has reached its lowest value since January 2023, when the cycle of rate hikes of the European Central Bank (ECB) was only halfway through.
This means that someone who has taken out a variable mortgage of 150,000 euros for 30 years and with a difference of 0.99% plus Euribor and has to revise his interest rate with the Euribor of July, will register a slight decrease in his payment 56.6 euros one month. This is equal to almost 680 euros per year.
“After a bullish period like the one we experienced last year, the drop we are seeing in Euribor is logical, especially since we are in a time in the mortgage market where we see some optimism that the ECB will continue to lower Euribor interest rates when returning from vacation,” said the director of iAhorro MortgagesSimone Colombelli.
The future looks positive for people with variable rate mortgages, the interest rate of which will be revised in the coming months. According to HelpMyCash experts“It is likely that the Euribor will move down at a moderate pace, intensifying from the last quarter onwards. We predict that it will end the year at a value between 3.25% and 3.50%.”
From the association they are more optimistic Until its endwhich expects the benchmark rate to reach around 3.20% in September and close 2024 at around 3%.
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.
