Mortgageeers could get a big break at the end of the month if the euro follows the path it took in August: it had decrease in daily rate The strongest in the last 8 years. This means that the interim average for this month of August It decreased to 3.2%.
The effects of lower interest rates are being seen. European Central Bank Now it has been joined by speculation that central banks may cut interest rates more aggressively than expected.
Black Monday in stock markets accelerates expectations of interest rate cuts
The reason for this was Black Monday and the turmoil that the stock markets experienced throughout the week. It started in Japan and has shaken markets around the world this week. The Tokyo stock market fell by 12.5% on Monday. US recession fears And for Bank of Japan raises interest ratesWhich made all investors who borrowed in yen (operations known as pregnancy trade in English).
in the past, Major stock markets around the world fell.. Join also Doubts about the seven tech giantslike Nvidia or Apple, because expectations about the development of artificial intelligence have cooled.
To slow it down, expectations of lower interest rates have increased.
Euribor falls and mortgages become cheaper
As a result, the positive side of this week will be felt in the pockets of many consumers with mortgages. If the Eurobor usually anticipates interest rate movements, it has done so again this time. At the beginning of August, the figure fell by more than it has in the past eight months. But it is a temporary figure. The monthly average fell to 3.2%. Three-tenths lower than the figure it closed at in July. And eight-tenths lower than it was a year ago, when it reached 4% in August.
This is where the benefits to all mortgagees will come into play. If the month ends this way, whoever checks now will see how the shares have been reduced. Between 60 and 70 euros per month for an average mortgage Which still has to be paid about 150,000 euros. After two years of continuous fee increases, in addition to the high price of the shopping cart they have suffered, they will now have a breathing space: It will save about 800 euros per year. For this religion.
Stock markets curbed their losses at the end of the week.
However, despite the cessation of the beating, Japanese, Wall Street and European stock exchanges The Federal Reserve managed to pare losses at the end of the week, and so far there have been no signs that monetary policymakers are deviating from the set course.
What’s on the agenda? ECB and Fed meetings in September. So it will be necessary after the holiday to see what step they will take, although there is a consensus among analysts that it is time to cut interest rates again.
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