“Euribor reaches new highest level since 2008, increasing mortgage payments”

The twelve-month Euribor, the most used indicator in Spain to calculate mortgages, closed the month of May with an average rate of 3.862%, a new maximum since 2008 and, although it has slowed down its rise compared to previous months, it is becoming more expensive again the installments of these credits. In the month of May, the average rate of the Euribor reached that 3.862%, slightly higher than that of April (3.757%), specifically, 105 basis points more, compared to the 110 that grew in the previous month, or 113 points basic increase experienced in March.

In daily rate, the indicator reached 3.939% yesterday, although in previous days it reached close to 4%, maximum since November 26, 2008. Specifically, this Monday it stood at 3.982%. At the average monthly rate, which is used to calculate the installments of variable mortgages, the Euribor remains close to 4%, a level that according to experts, will exceed in the short term.

This increase means that a person who has contracted a variable mortgage of 150,000 euros for 30 years and with a differential of 0.99% plus Euribor and must review their interest rate in the month of May, will register an increase in their quota mortgage of about 290 euros per month. In absolute terms, it would go from paying about 500 euros to just over 790 euros per month.

Joaquín Robles, from the firm XTB, assures that the Euribor will continue to rise, although it could do so more slowly in the coming months, reaching between 4.20% and 4.25% between June and July, after two increases more than the interest rates that the European Central Bank (ECB) is expected to attack.

Also, the specialist in the HelpMyCash mortgage market, Miquel Riera, sees “very likely that the Euribor will continue to rise because the ECB is expected to raise rates again in mid-June to contain the high inflation in the euro zone” . According to Riera, it is likely that the ECB will increase its interest rate to 4% at its next meeting on June 15.