renewal of a variable mortgage half was standing at the beginning of last July 250 euros per months, or the same 3,000 euros per year. Euribor, the benchmark index for most variable mortgages marketed in Spain, closed June at 4,007%; this represents an increase of around 250 euros per month.
Thus, the index crossed the 4% mark for the first time since 2008, and Euribor continues to break records not seen since 2008.
Interest rates set by the bank European Central Bank (ECB) In the euro area this rate stood at 4%, so mortgages often start at this significant percentage. In those that have already been issued, mortgage holders with fixed loans breathe a sigh of relief, but those with variable debt do not.
Therefore, it is understandable that many mortgage holders ask themselves the question of when mortgages will drop. Head of Government Pedro Sánchez and Vice President for Economic Affairs Nadia Calviño committed to: Expanding access to mortgage relief measures collected in good practices guidelines Rents up to 37,800 Euros.
Calviño pointed out that this election promise, which will be one of the first measures to be adopted in a possible next legislature, is defined because: Economic situation better than expected and interest rates are rising more than expected.
Bankinter’s prediction
Led by María Dolores Dancausa, the bank recently updated its mortgage market forecasts and stated that Euribor will exceed 3% by 2025. Bankinter’s analytics department, Nearly 5% price drop between 2023 and 2024 We think that Euribor and Euribor closed this year over 4%.
The Savings Banks Foundation (Funcas) determined the annual average of Euribor for this year as follows: 4.25% and 4% in 2024. BBVA Research believes that this rate could reach 4.5%. The forecast is that the European Central Bank (ECB) will continue its current policy of raising interest rates up to two times this year, so that the cost of money can reach 4.5% at the end of the year, which can therefore have an impact. .
Faced with this situation, many mortgage holders amortize some of their debts to banks and renegotiate the terms of the loans signed.
According to data from the Bank of Spain compiled by the Spanish Mortgage Association (AHE), more than 1,300 million renegotiations were made between January and April; That’s three times as much as last year. In the first five months of the year, the amount of depreciation reached 8 billion 326 million euros.