He euribor within 12 months it has closed December at 3.679%, its largest monthly drop for 14 years, in February 2009. The index used to calculate most dues of Spanish variable mortgages registered 4.022% in November, so the decrease has been 0.343 percentage points in just 31 days.
Specifically, the Euribor closed November with a monthly average of 4.022%. In December, the index has been cut by 0.34 points, which is a smaller decrease than that recorded in February 2009 of 0.48 percentage points.
The fall of the Euribor in December
Furthermore, the December figure implies returning to minimum levels since last March, when the Euribor ended at 3.647%. Despite this, it remains above the level recorded at the end of 2022, which was 3.018%.
In its daily rate, the index has already stood at 3.513%, its lowest level since March 27, when it stood at 3.469%.
The December Euribor level implies that a person with a variable mortgage of 150,000 euros, a expiration period residual of 30 years and a differential of 0.99% plus Euribor, when reviewing its type of interest In the month of November, you would experience an increase of approximately 295 euros in your mortgage payment monthly.
Mortgages will go up next year.
This calculation represents the maximum increase for someone who has taken out a mortgage with that funded level. Since this is a review at the beginning of the loan (i.e., with 30 years remaining to amortize), the change in the interest rate has a significant impact as there is a considerable amount of principal outstanding.
From iSavings They point out that this is “very good news” for mortgage holders, since after more than a year of almost continuous increases, a downward trend change in the index is confirmed.
«This indicator, which since it returned to positive levels in April 2022, recorded inter-monthly increases of up to one percentage point, has broken down This December the barrier of 4% that it reached six months ago, in June, of 4.007%,” states the mortgage comparator. Furthermore, it stands out that the month-on-month drop, of more than three tenths, is the highest in 14 years, since February 2009.
However, the mortgage director of the mortgage comparator and advisor iAhorro, Simone Colombelliwarns that “it must be cautious» and «not ‘going up’ too quickly» because he sees it likely that the Euribor will remain around 3% «for many months before continuing its fall.»
The spokesperson affirms that “this drastic drop in a single month has caught everyone by surprise.” surprise». “We expected a fall, but not that much, but rather some decline that would be little by little, placing the Euribor around 3.5-3.7%,” although he defends that “this downward rate cannot be maintained over time and “We cannot yet rule out that there may be another increase, even if it is minimal, to adjust the levels of this indicator to around 3%.”
iAhorro points out that, for the Euribor to continue decreasing, it is crucial that the European Central Bank (ECB) reduces the interest rates officials, an event that “at the moment has not happened.”
On the other hand, Kelisto’s representative, Estefanía González, highlights that with “very controlled” inflation in the eurozone and a European Central Bank (ECB) which not only rules out increases or maintenance of rates, but openly recognizes that reductions will arrive in 2024,” the markets consolidate their forecasts from a few weeks ago “taking the Euribor downward at a frenetic pace.”
«Despite this, the Euribor picks up again compared to December of last year, which continues without giving respite to variable mortgages with annual review that are reviewed in January. The good news will come, of course, for those who have a semi-annual review, who will see reductions in their installments, since six months ago the Euribor was still above 4%,” says González.
For the coming months, the spokesperson for Kelisto considers that it is “increasingly clear”, and if there are no surprises in inflation, the performance of the economy in the eurozone and the plans of other central banks, “that rate cuts will arrive in the first half of the year”, although the “great unknown” is whether there will be a decline at the gates of the summer or at the end of the first quarter of the new year.
2023-12-30 00:38:53
#Euribor #registered #largest #monthly #drop #years #December
