Madrid, Oct 29 (EFECOM).- The twelve-month Euribor, the indicator most used in Spain to calculate the installments of variable mortgages, will close October higher, around 4.17%, despite the fact that the The European Central Bank (ECB) decided this past Thursday to keep interest rates unchanged.
With several sessions remaining until the end of the month, the provisional average rate of the indicator stands at 4.17%, slightly higher than the 4.149% in September.
Experts expect the Euribor to remain around current levels, between 4 and 4.1%, in the coming months, as the ECB is expected to keep interest rates high for longer than previously estimated. .
The ECB decided this week to stop raising its interest rates because inflation is subsiding, after having raised them uninterruptedly on ten occasions since July 2022.
However, its president, Christine Lagarde, warned that energy prices could rise further due to the increase in geopolitical tensions in the Middle East, and estimated that “official interest rates are at levels that, maintained for a sufficiently long period of time, will contribute substantially to this objective” of 2% in the medium term.
Although the Euribor rises in the monthly rate, in the daily rate, and after the ECB stopped its monetary policy, the indicator fell sharply on Friday, to 4.104%, the lowest since September 12.
The Director of Mortgages of the mortgage comparator iAhorro, Simone Colombelli, has highlighted that the growth of the Euribor is reducing month by month, and since its evolution depends, in large part, on the decisions taken in the coming months by the ECB, after the adopted on Thursday by the organization, the indicator is not expected to “experience significant growth for now.”
The next meeting of the ECB will be in December and “we will have to be aware of whether the organization raises rates again by another 0.25 points or waits until 2024 to continue with the increases, because it is clear that there will be more,” he said.
The rise in the Euribor in October will cause a new increase in mortgage payments, since a year ago, it stood at 2.629%.
In this way, in an average variable mortgage of 138,171 euros (according to the latest data published by the INE corresponding to August), for a term of 25 years and with an interest of Euribor plus 1%, the monthly payments will increase from 701 euros at 821 euros. EFE
mtd/jlm
2023-10-29 07:23:53
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