The recent decrease in the Euribor, a crucial indicator for variable mortgages in Spain, has caught the attention of many citizens. Despite being the most significant drop in the Euribor in a single month since August 2012, its effect on mortgages remains a topic of discussion. In this month of November, The Euribor has reached an average of 4,022%, a decrease of 0.138 points compared to October.
However, this drop has not alleviated the burden on mortgages, since it is still higher than the previous year. For an average mortgage with a spread of Euribor plus one point, this translates into a increase in the price of the fee by 79.8 euros per monthwhich implies almost 958 additional euros per year.
The increase in the average mortgage has once again fallen below the barrier of 100 euros per month, something that has not happened since July of last year. During the first months of the escalation, monthly increases exceeded 260 euros. In retrospect, the average mortgage has risen some 300 euros per month regarding what was paid in 2021, even for those who review it in November, who already suffered an increase of more than 210 euros last year.
The importance of the Euribor lies in the fact that it is the main reference to review variable mortgages, a process that usually occurs once a year. The difference with respect to the previous year is what determines the increase or decrease in fees. Thus, despite being lower than the previous month, loans continue to rise as a reflection of the rise in the Euribor in the last year.
On the other hand, experts indicate that the drop in the Euribor could begin to be noticed in mortgages towards mid-2024although it will not be until December when it begins to be significantly reflected in bills and mortgage payments. For those who have variable mortgages, the hope is to see this decrease at the end of the year or a little before. Bankinter and other entities expect a general drop in prices around the 5% in between 2023 y 2024, which will also affect those who plan to buy a home and apply for a mortgage.
Finally, it is projected that in 2025 the deceleration of the Euribor reaches a 2,2%, which will cause the first reductions in the mortgage payment. Although the Euribor continues to rise, it is expected that at the end of 2023 and beginning of 2024, this index will be at 4,5%, starting a possible deceleration, depending on the decisions of the European Central Bank about interest rates.
In conclusion, the recent drop in the Euribor represents a breathafter having done nothing other than climb, but his positive effect in mortgages still is not palpable for the majority of citizens. The hope is that the coming months will bring a more notable decrease that will be reflected in a more bearable financial burden for mortgage holders in Spain.
2023-12-04 06:03:39
#Euribor #drops #affect #mortgages
