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%.
Shannon Bailey writes for Hardwood Paroxysm, covering news, politics, business, technology, sport, entertainment, and lifestyle. They focus on clear reporting, current affairs, and stories that matter to readers, providing reliable information in an accessible and engaging way.
