The twelve-month Euribor, the most used indicator for calculating mortgage payments in Spain, continues its upward trend and It has now surpassed 3.9% at the daily rate, reaching its highest level since November 2008..
According to market data consulted by EFE, Euribor was released daily this Wednesday. 3.944%Highest since 28 November 2008. With five trading days, The average rate for March is 3.85%, much higher than 3.534% in February or 3.337% in January..
In February 2022, Euribor was trading negative at -0.335% and last month’s increase means: increase in the cost of variable mortgage up to 600 euros per month.
experts, policy European Central Bank (ECB) It will continue to increase Euribor because the institution is raising interest rates to combat inflation.
Between July 2022 and February 2023, interest rates in the euro area rose from 0% to 3%.and this March the ECB is expected to raise them again by fifty basis points.
In this content, some experts see Euribor at 4% and above at the end of this month..
Recently, ECB President, Christine Lagardeinsisted that the institution would take the necessary measures. bringing inflation to the 2% target, it will raise interest rates again by 50 basis points at its meeting this month.
Also, the president US Federal Reserve (Fed), Jerome Powellreassured that the latest economic data were better than expected this Tuesday and suggested that it would be necessary to restore price stability. maintaining a “tight” monetary policy “for a while”something that is not well received by the market.
Why did all this happen an increase in the profitability of government debt. In the case of Spain, the yield on the ten-year bond reached 3.73% this Wednesday.
In a month, Spanish bond profitability jumped from 3.35% to 3.75%.