The Euribor drops to 3.55%. This value is a reference for those who have to pay the mortgage payment month after month after signing the deeds and purchasing a home. Although it will not be immediately, the truth is that this index gives respite to those who are in this situation and have seen how in recent months there has been an increase in the amount to pay. This is the second month of lower interest rates, which places them below the feared 4%.
The Euribor marks a new low since March 2023, although the November data already gave clues about what could happen. Experts already assume that interest rates (encouraged by the latest decisions of the European Central Bank, ECB) are in a new phase. But the doubt remains as to when they will go down and thus confirm the long-awaited reduction in variable or mixed rate mortgages.
The president of the ECB, Christine Lagarde, provided important information during her last appearance before the media, but pointed out that a date cannot be set for these reductions since it does not depend on the calendar, but on the data.
When are mortgages going to go down?
You will not immediately notice a reduction in the monthly payment of the mortgage but it will be noticeable in the coming weeks. They will be those who have been granted a loan mixed type mortgage those who will see this decrease, since they are reviewed every 6 months. On the other hand, the time has not yet come for the annual ones, experts point out.
In fact, during this month of December variable mortgages will continue to rise during the remaining days. The differential is positive, something that does not happen with the mixed type, which could begin to decline from this first moment.
The first months of 2024 are key. One is already sighted mortgage payment reduction starting in February or March. The first in more than two years, which gives a break to those who have had problems making ends meet due to the increase in monthly payments after purchasing their home.
Why does the Euribor go down but not the mortgage?
Many citizens who own a house wonder when the official data comes out, why does the Euribor go down but not the mortgage? That is, why when these data are lower than previous months, the quota remains the same.
The answer is simple. It is a gradual decline, not immediate. Experts ask for patience because the results are there. The figures do not change and in a short time this reduction in the Euribor will be evident and will be noted in the savings of many families.
2023-12-28 08:44:26
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