After an unstoppable climb for almost a year, the Euribor will foreseeably end the month of July at 4.15%. Despite the large rise, it means that the rate of rises that it has been registering in recent months will continue to slow down, given the possibility that the European Central Bank (ECB) will halt the rise in interest rates.
Compared to June, the increase is 14 basis points, similar to that registered last month, when it went from 3.862% in May to 4.007%. If the level of July of this year is compared with the same month of 2022, the increase is 3.29 percentage points. In addition, the indicator continues at its highest levels since November 2008, when it stood at 4.350%.
You have to go back 15 years to see the index to which most mortgages in Spain are referenced at a similar level. Specifically, the previous maximum was in November 2008, when it closed at 4.35%. Its all-time high was a few months earlier, in July of that year, reaching 5.393%.
This means that a person who has contracted a variable mortgage of 150,000 euros for 30 years and with a differential of 0.99% plus Euribor and must review their interest rate in the month of May, will register an increase in their mortgage payment of about 265 euros per month, about 3,180 euros more per year.
It is foreseeable that the Euribor will continue its upward trend in August, after the ECB approved last Thursday a new rise in rates of 25 basis points to raise them to 4.25%, their maximum since there are records, so the index to which most variable rate mortgages in Spain are referenced should include this new increase.
Experts estimate that the ECB will raise interest rates to 4.5% before the end of the year unless inflation in the euro area, now at x, experiences a large drop in the coming months.
2023-07-30 22:14:47
#Euribor #dismisses #July #highest
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