HE euribor It recorded the smallest increase in more than a year in October. be around 4.16%However Variable interest rate mortgage payments will continue to increasealthough less intense than previous months. In this way, it becomes the main reference for variable interest loans for home purchase. Chains increased for two consecutive months. After falling for the first time in 20 months in August, the average level was 4.149% in September. Index in all cases Looks on track to lose 4%.
With this evolution euribor Up to one year Moving away from 4.2% level once banks (this is the interest that organizations lend to each other) interpret this The end of interest rate increases is approaching. At the last meeting of its governing council, the European Central Bank (ECB) stopped the 4.50% increase in money prices that started in July last year. Analysts expect the one-year daily Euribor to remain around 4%-4.1% for several months. Although the increases have ended, the monetary institute underlined that the money price will remain high “for a long enough time.”
Although variable rate mortgages are reviewed every six months, most do this once a year. Installments increase if the Euribor in the month that serves as a reference for reviewing the loan is higher than a year ago. The reason why quota increases are starting to soften and become more pronounced in the coming months is precisely because the new Euribor levels are quite high compared to the levels in the second half of 2022. the first half of that year.
In October last year, the index was at 2,629, which means the gap was 1,541 points and therefore softened. While this difference was 2.82 points in August, the highest point was 3,884 points in March. You can estimate how much your mortgage will be with this calculator.
Inside mortgage 150,000 euros for 24 years at Euribor plus 1%, with reference to October data (normally reviewed in December), The monthly fee will increase from 780.90 euros to 909.24 euros, i.e. 128.34 euros more per month and 1,540.08 euros more per year. For a 300,000 euro loan with the same features, the increase will be from 1,561.80 euros to 1,818.48 euros, i.e. 256.68 euros more per month or 3,080.16 euros more per year.
Decreases since May
The increase is more moderate than in previous months. The installments of the two loans, which were used as a reference to understand what they have suffered in the last two years, were revised with August 2021 data and revised to 553 and 1,106 euros per month, respectively. This figure is expected to increase within two years between 355 and 710 euros per month. So what will happen 64% more expensive.
CaixaBank CEO Gonzalo Gortázar said during the presentation of the third quarter results with available data: The forecast is that mortgage payments will start to decrease according to May data and we anticipate Euribor to remain around 3.2-3.3% over the next three or four years.