The Euribor Declines for the Fourth Consecutive Month, Closing July at 3.53%
Continued Decline of the Euribor
The Euribor, the reference index for most variable mortgages in Spain, closed July at 3.53%, marking the fourth consecutive month of decline. In June, the index was at 3.65%, which represents a significant drop. Compared to the same month last year, when the Euribor was at 4.15%, the reduction is even more notable, providing relief to mortgage holders following the continuous decline of the Euribor.
Impact on Mortgages
For those with variable mortgages, this decline implies financial relief. A typical mortgage of 150,000 euros over 30 years with a differential of 0.99% plus Euribor would see a monthly reduction of 56.6 euros, translating to an annual saving of approximately 680 euros. This relief comes at a crucial time, as many families are adjusting their budgets due to inflation and other economic factors.
Factors Influencing the Decline
Several factors have contributed to this continued decline of the Euribor. Firstly, the policies of the European Central Bank (ECB) have played a crucial role. The ECB’s decision to maintain a looser monetary policy has helped keep interest rates low. Additionally, the overall economic situation in the Eurozone, with controlled inflation and moderate growth, has allowed the Euribor to remain low.
Future Outlook
Real estate and financial experts have varied perspectives on the future of the Euribor. Simone Colombelli, Mortgage Director at iAhorro, suggests that the ECB might continue lowering interest rates, keeping the Euribor at low levels. On the other hand, analysts at HelpMyCash predict that the Euribor could close the year between 3.25% and 3.50%. Asufin, meanwhile, expects a rate around 3% by the end of 2024.
Optimism in the Mortgage Market
The mortgage market shows moderate optimism, hoping that the downward trend of the Euribor will continue. This decline provides relief to families and homeowners who will review their mortgages in the coming months, allowing them to enjoy lower installments and greater financial stability.
Conclusion
The continued decline of the Euribor is positive news for mortgage holders in Spain, offering financial relief and optimistic prospects for the future. With the influence of ECB policies and a stable Eurozone economy, this downward trend is likely to continue, benefiting many families.
