The 12-month Euribor continues to put pressure on those who have taken out a variable mortgage. The index has closed June above 4%, specifically at 4.007%, after 18 consecutive increments. The main mortgage index in Spain thus stands at its highest since November 2008, which will make variable mortgage payments more expensive in more than 250 euros per monthtaking as reference an average mortgage of 50,000 euros at 30 years and with a differential of Euribor +1%.
“�� The Euribor closes June above 4% and will make variable-rate mortgages more expensive by more than 250 euros per month
▪️ Everything indicates that the European Central Bank will raise interest rates again in July by 0.25 points
��️ @guillehg_https://t.co/09CkqjAv8o pic.twitter.com/5cplDjUmA6“
— Radio 5 (@radio5_rne) June 30, 2023
This figure is the result of a monthly average and has yet to be confirmed by the Bank of Spain, but if ratified it would exceed the 3.86% with which it closed last May. Furthermore, it is much higher than June 2022when it was 0.852%, and the upward trend in recent days has also been seen in its daily evolution, since this Thursday it has exceeded 4.1%.
In this context, this Thursday the Minister of Economic Affairs, Nadia Calviño, has transferred this Thursday, in a meeting with users and banking employers, that they have received 33,000 applications for adherence to the Code of Good Practices that the Government agreed with the banks in November 2022 to alleviate the impact of the rise in the Euribor on vulnerable families or at risk of vulnerability and with variable-rate mortgage loans.
It maintains its upward trend in parallel to the rise in rates
In this way, the Euribor continues to rise month by month parallel to the rate increases carried out by world banks. At its last meeting, the European Central Bank (ECB) raised rates by 0.25 points, to a general rate of 4%; and the United States Federal Reserve (Fed) froze them between 5 and 5.25%. Both institutions have advanced upcoming increases in the remainder of the year to reduce inflation to 2%.
This monetary policy influences mortgages, since the entities tighten the conditions for their clients even more and, in addition, they see how their quota increases in each revision.
Experts expect it to continue to rise in the coming months
Analysts from the financial comparator HelpMyCash.com explain that historically the Euribor has almost always been higher than the ECB’s main rate, normally between 0.25 and one percentage point. So, so, they see probable that the index continue to rise in the coming monthssince the ECB plans to raise rates again in July, as Lagarde already indicated at the last meeting.
In fact, remember that the former president of the ECB, Mario Draghi, stated a few weeks ago that “we are heading towards a world of higher interest rates”, statements that, as they say, have a clear message that we could have entered a period of high rates that extend over a period of time.
The director of Mortgages of the comparator and mortgage adviser iAhorro, Simone Colombelli, sees “it is very possible that we are about to reach the ceiling or the maximum level of the Euribor”, since he explains that in the first half of 2023 has been stabilizing and it has registered increases of between one and two tenths, as was usual before the outbreak of the war in Ukraine.
“The increases that we saw last summer, especially between August and September 2022, with a point of difference between the data of one month and that of the next, we have not seen them for a long time and that is very good news. It has arrived the stage of stability to the Euribor”, he assures.
2023-06-30 07:24:53
#Euribor #closes #June
