With the recent rise interest rates by European Central Bank owners up to 4.5% mortgages They face an important question:When will housing loans drop?? connection between mortgages and Euribor It is very important to understand the current situation Expert forecasts suggest we won’t see a significant decline until at least 2025..
Euribor’s impact on mortgages
Euribor has reached unprecedented levels since 2008 financial crisisplays a fundamental role in determining mortgage payments. This index, which is expected to reach 4.5%, forms the main reference for most mortgages in Spain. Therefore, the question of when mortgages will fall is essentially linked to the development of Euribor.
Expert predictions: When will mortgage loans fall?
Carlos López from Euribor.com notes: the interest rates They could start falling in Europe in the second half of next year, which could lead to Euribor falling towards the end of 2024.. However, it will take time for this change to be reflected in mortgages, which are reviewed every six to twelve months. Therefore, many families will not experience a decrease in their monthly payments until 2025.
Analyzing mortgage loans and Euribor, FuturFinances.com economist and CEO performed a simulation for a typical mortgage of 180,000 Euros with a 25-year maturity and Euribor + 1% variable interest. Monthly payments, initially 785 euros, at annual reviews, They may exceed 1,000 euros at the end of 2023 and 2024, and cannot fall below this figure until September 2025.
What can mortgage holders do?
When asked about When will housing loans drop?Mortgage holders need to be aware of the situation and be prepared for higher payment periods. It is important to review mortgage contracts and consider possible renegotiations or changes to fixed rates if circumstances permit.
The relationship between mortgage and Euribor will continue to be a matter of interest in the coming years. Despite Forecasts show mortgages won’t go down until 2025Staying informed and seeking financial advice is crucial to navigating this changing landscape. The answer to the question of when mortgage lending will fall largely depends on how Euribor develops and the policies of the European Central Bank.
In a world where personal finance is increasingly complex, understanding Euribor trends and their impact on mortgages are fundamental. There is no simple answer to the question of when mortgage loans will decline, but with the right information and proper planning, mortgage holders can better meet this challenge. Stay tuned for updates and expert analysis to prepare for future developments.