The twelve-month Euribor, the most widely used indicator for calculating mortgages, continues rampant in June, a month that has closed at 0.852%which represents its highest rate since August 2012.
The average rate for June represents an increase of more than half a point compared to that of May (0.287%) and slightly more than 1.3 points in the accumulated figure for the year (In January, the Euribor stood at -0.477%).
Likewise, in the interannual rate, the registered increase is up to 276.03%, according to the calculations of iAhorro, whose experts point out that this is the highest monthly and year-on-year rise in history of the indicator.
In the absence of the Bank of Spain confirming the data, the rise in the Euribor will mean that a sharp increase in the cost of variable mortgages will have to be updated. A year ago, the Euribor was negativeat -0.484%.
Thus, an average mortgage of 150,000 euros at 25 years with a spread of 1%, the fee will rise by just over 90 euros per month, or 1,100 euros per year. In the case of a mortgage of 300,000 euros, with the same conditions, the increase will be more than 180 euros per month, or almost 2,200 euros per year.
From HelpMyCash, its experts remind that the euribor leads to the rise throughout 2022which has meant that mortgages have risen for those who have had to update them in the months of February, March, April, May and June.
The majority market forecast is that this index continues to rise and close the year above 1%. Even the Bankinter Analysis Department believes that it will be around 1.90% at the end of the year.
upward journey
Experts attribute the rise in the Euribor to high inflation in the euro zone, and the European Central Bank’s decision to raise rates in July to stop it. The Director of Investments at ATL Capital, Ignacio Cantos, explains that central banks are only concerned about inflation and, therefore, the rise “is going to be forceful.” “If so, still there is an upward path for the euribor this year“, has said.
In June, the Euribor has shot up more strongly, after the ECB’s monetary policy decisions were known, and has even exceeded 1% in the daily rate for the first time in almost a decade, although in recent sessions it fell slightly after the European body will be willing to create a tool to curb the rise in risk premiums.
Added to the rise in mortgage payments is the strong inflation, which makes the disposable income of families is reduced.
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