HE twelve month EuriborThe reference index for variable mortgages sold in Spain rose this Monday at a daily rate of 3.751%, while the provisional average for December was 3.773%. If the month ends like this, this figure will return to May levels, representing the third monthly decrease of the year. There was a first decrease in variable housing loans, which are reviewed every period, starting from May 2022.
In June Euribor was at 4.007% so anything representing a lower percentage would mean a decline in mortgages which are reviewed every six months. Likewise, it also represents a A ray of hope for those who have a mortgage loan that can be checked every twelve monthsBecause the scenario is that central banks will stop the interest rate increases that they started last year to fight inflation.
The index they are linked to is Euribor 3.7 million five million mortgages in Spain, It was at 4.027% in Novemberwhich means it is registered second autumn On a monthly basis recorded in August, it reached the highest level since July 2020. Collected 4,662 points Percentages from -0.502% in December 2021 to 4.149% last October, with unprecedented increases over 22 months.
At its last meeting on October 26, the ECB decided to maintain interest rates after increasing them 10 times in a row. Euribor reached its highest level since 2008 with 4.160% in October..
Equity markets and fixed income are already realizing this
Moderation Eurozone Consumer Price Index (CPI) increased to 2.4% in NovemberThe fact that the ECB is close to its inflation target of 2% has convinced the market that the central bank, led by Christine Lagarde, will definitely stop the increase in the cost of money and with it the restriction that Euribor reflects these days. This pause was a shock to European stock markets, and European stock markets in particular. mountain goat 35 It is trading at 10,200 points, the highest level since January 2018.
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The European Central Bank (ECB) is expected to pause interest rate hikes It also has an impact on the fixed income market. Declining interest in literature fell to six- and twelve-month lows In the last tender held by the Undersecretariat of Treasury last Tuesday. Profitability dropped to 3.3% on twelve-month billings and 3.61% on six-month billings.
The same thing happened with the 3 billion 430 million dollar liability issue issued by the Treasury this Thursday. In particular, the establishment was put up for auction Government debts with a remaining life of 5 years and 11 months and a 0.60% coupon; Inflation-Indexed Government Debt Securities with 0.70% coupon and 15-year Government Debt Securities with 3.90% coupon, with a remaining life of 10 years.