Friday, 22 September 2023
WorldThe Euribor gives a slight respite: it falls in August for the...

The Euribor gives a slight respite: it falls in August for the first time in a year and a half

There is already new data on the twelve-month Euribor. The indicator most used in Spain to calculate variable mortgage loans has decreased in the month of August.

It is the first time that the trend has fallen in just over a year and a half. But it still remains above 4%, closing the eighth of the month at an average rate of 4.073%.

Despite the drop, the consequences will continue to be suffered in the annual reviews of variable mortgage payments and, with the data for August, they will become more expensive.

An increase in quotas that is due to the difference of 1.249% in August 2022 and 4.073% this month of August.

Thus, in an average variable mortgage of 143,796 euros (according to the latest data published today by the INE corresponding to June), with a term of 25 years and with an interest rate of Euribor plus 1%, the installments will go from 627 euros to 846 euros.

The latest data published represents an increase of about 220 euros per month or 2,640 euros per year.

Given the drop in the indicator, in statements to EFE, the economist and financial analyst Javier Santacruz has assured that the Euribor reflects what the market is discounting, which is that in September the European Central Bank (ECB) will undertake the last rate hike of interest.

This will be followed, for an extended period, by price stability, barring a deep recession in some of the major economies.

However, the economist does not expect a change in the indicator’s trend, and sees it likely that it will remain around current levels, between 4 and 4.1%.

In the same way, the director of Mortgages of the comparator iAhorro, Simone Colombelli, is cautious, and assures that “August, historically, has been a month of declines because everything is paralyzed”, so he sees it likely that the Euribor will return to go up from September.

“I wouldn’t say that what we are seeing is a downward trend as such, but rather a small seasonality in the data,” added Colombelli, who believes that uncontrolled inflation will lead to new rate increases by central banks. .

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