The break in the rise of interest rates of the euro zone is already being reflected in what banks charge for lending to their clients. In the case of mortgages, they are already experiencing their second consecutive month of declines, while in consumer loans, interest rates have been reduced to levels from a year ago.
He European Central Bank (ECB) began a strategy to combat inflation in July 2022 by increasing interest rates, which it maintained for fifteen months, until September of last year. In October, however, its Governing Council decided maintain the price of moneysomething it also did at its December meeting.
Currently, the general interest rate is at its historical maximum of 4.5%. Meanwhile, the marginal credit facility (what banks pay for overnight financing) remains at 4.75% and the ease of deposit (the remuneration to entities for parking their money in Frankfurt) remains at 4%, its highest level since the creation of the euro. This last piece of information is the one that most affects consumers’ pockets.
Falls
In the fall of last year, the interest rates on loans that banks give to their clients also experienced a change in trend. From the latest available records of the Bank of Spain It appears that mortgage interests have been falling for two months (October and November) in a row, reaching an average of 4.02% APR.
According to statistical information, the peak was reached in September, just when the last interest rate increase occurred. At that time, mortgages were granted at an average of 4.106% APR. However, these rates still remain at their highest levels in recent months.
[El BCE decreta una pausa en las subidas de tipos y deja el precio del dinero en el 4,5%]
The truth is Mortgage prices have experienced a real rally in recent months thanks to the push of the rise in interest rates, which has considerably raised the interest rates on new fixed mortgages.
This is reflected in the data. After months of stabilizing around 1.6%, in the spring of 2022 the APR interest on mortgages began to rise in the heat of the advance of the Euribor, exceeding 2% that summer and 3% at the end of the year. Already in August 2023 it exceeded 4% with its peak at 4.106% in September.
[Punto de inflexión del Euríbor: por primera vez en dos años abarata las hipotecas que se revisan cada seis meses]
In the case of the consumer loansinterest is already at levels not seen since December 2022. It stands, specifically, at 8.46% APR in November (latest data available), which represents a sharp drop compared to the data from the previous two months ( 9.15% in September and 9.16% in October).
The beginning of the rate increase meant that this type of credit exceeded the interest rate of 8% APR on average and already in August of last year it stood at 9.504%, its highest level since February 2015.
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2024-01-10 02:03:38
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