The preliminary figures for August are 3.170% after five consecutive months of declines. A year ago, the most commonly used index for calculating variable mortgages was above 4%.
After five consecutive months of declines, the economy has euribor The twelve-month index, the most commonly used index to calculate variable mortgages, expires in August annual minimumsThe preliminary data are in the 3,170 %, a far cry from 4.073% in August 2023.
The drop in August was also the largest of the year: from 3.5% to 3.1%.
This means that the people who have entered into a contract a variable average mortgage of 150,000 euros for 30 years with a spread of 1% and they have to revise the interest rate in the coming days, you will see has reduced his quota about 81 euros per monthwhich amounts to 972 euros per year.
The index started its downward path in March 2024, after the bullish period that took place in 2022 and 2023. The highest level was reached in October 2023, reaching 4.16%.
This upward trend is closely linked to the interest rate set by the main central banks – the ECB and the Federal Reserve – for transactions between banks. After months of raising rates with the aim of controlling inflation, they decided to stop and maintain the rate. For example, the ECB decided to set the rate at 4.25% at its last meeting in July.
Experts believe that the Euribor will rise in the coming months will continue to decline. Despite this, they do not believe that it will reach level 0 or the negative values it had in the period between 2016 and 2022. Massimo Cermelli, professor at Deusto Business School, predicts that in 2025 the index will move about 2.5%.
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.
