December ends, time for balance sheets, and among the statistics that most concern mortgaged is to know how much the euriborthe reference index for calculating most of the mortgages in Spain, and how it will affect your fees.
Well the good news is that the euribor ended the year with a value of 3,679 %so it descends below 4% for the first time in the last six months and is experiencing the largest monthly drop in 14 years.
While in June it was above 4%, in recent days it has seen a steady decline: from 3,53% that was on Thursday the 28th fell to 3,51% on Friday the 29th.
Those with mortgages will be able to save 228 euros per year for every 100,000 euros of loan. Photo: Freepik.
How much will be saved with the drop in the Euribor
With this index, those people who have hired a 25 year mortgage with a semiannual review they will have a savings of 19 euros monthly and 228 euros annually for every 100,000 euros.
For the first time in six months the Euribor falls below 4%
That is, if the loan is 300,000 euros, the fee to be paid will have a reduction of 57 euros per month, and 684 euros by year.
It is worth remembering that in October the European Central Bank had kept interest rates at 4,5%, putting the brakes on ten consecutive rate hikes; an orthodox strategy to reduce Union inflation to 2%.
The Euribor started 2023 in the 3,337 % and last November concluded with its second monthly drop of the year and closed at 4,022% (the first had been in August, when it stood at 4.073%); with a 4.16% peak in October.
What will happen to Euribor in 2024
According to EFE the Experts place the Euribor next year by levels below 4% given the market’s discounted expectation that there will be no more rate hikes by the ECB and that the upward rate cycle has ended.
For example, experts in the Data Analysis department Bankinter They predict that the Euribor will will moderate in the next years.
Specifically, and according to their estimates, the 12-month Euribor could weaken up to 3,25 % in 2024 and 2,75 % in 2025.
While the Foundation of Savings Banks (Funcas) and CaixaBank Research place the average level of the Euribor in 2024 at higher levels, in the 4.2% and 3.6%, respectively; with the hope that by the end of 2024 it will decrease to 3.06%.
More optimistic, Asufin believes that the Euribor could close 2024 in the 2,60 %, and predicts that it will be 3.30%, 3% and 2.80% in the coming months of March, June and September, respectively.
Regarding the comparator Kelistoanticipates that there will be drops for the months of March-April, with a Euribor that could consolidate at levels between 3 % y 3.5% throughout the second quarter of 2024.
2023-12-30 20:39:36
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