The twelve-month Euribor, the index used to indicate most mortgage loans, closed April at an average of 3.703% and recorded a lower level than last year (3.757%). In this way, variable mortgages whose installments are reviewed annually will benefit from a reduction, something that has not happened since the end of 2021. The reduction will be slight – at 3.10 euros per month and 37.20 euros per year for every 100 thousand euros of the loan. 25-year mortgage – but it represents a “change in trend”, according to the Association of Financial Users (Asufin).
If interest rates continue this downward trend, the index will reach 3% at the end of the year, which means a decrease in monthly installments by about 460 euros annually, according to the entity’s calculations.
Euribor's monthly close was slightly lower than the figure for March (3.718%) but higher than the figure recorded in January (3.609%) and February (3.671%). For five months now, it has remained below 4% for five months in a row. In the summer, it reached its highest level since 2008, recording 4.15% in July.
Since December 2021, monthly mortgage payments have increased for twenty-seven months. Rising inflation and interest rate hikes driven by the European Central Bank have pushed the euro month after month away from the January 2021 historic low (-0.505) after ten years with rates close to 0%.
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