Even the most optimistic did not expect this. In December, the decline in the Euribor rate, the main reference for variable rate mortgages, was consolidated, closing at an average of 3.679%, at the level of April. On the last day of the year, the index settled at 3.51%, after recording the largest month-to-month decline in 14 years.
Since last November 29, the Eurobor has not stopped falling as markets sense that the phase of interest rate hikes by the European Central Bank to curb inflation could be reaching or approaching an end. This month, the Consumer Price Index (CPI) fell to 3.1%, making it about half its level at the beginning of the year.
The average that ended the month was clearly lower than November, which was 4.022%. The current level is still slightly higher than last year, with the average one-year Euribor in December 2022 standing at 3.018%, meaning those who review their mortgage annually will have to pay more fees, although the climb is becoming smoother. . Quotas will begin to decline only when the average monthly rate becomes lower than it was a year ago. This was initially expected to happen in May, but could be brought forward if there are no further increases in funds rates, according to experts.
The European Central Bank's decision to keep official interest rates at 4.5% at its last meeting of the year pushed the Eurobor rate, which is also the rate at which banks lend money to each other, to continue falling. Experts expect this trend to continue in the coming days and months, although it will be gradual.
Since Euribor reached its annual high in September, when it reached 4.228%, the index has started to decline, which was announced as of November 29.
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