MADRID – The Euribor, the main indicator for most variable mortgages in Spain, has crossed the 2% mark in the daily rate for the first time since December 2011.
This news comes a day after the Governing Council of the European Central Bank (ECB) agreed on interest rates. The ECB has announced an interest rate hike of 75 basis points so that the interest rate for its refinancing operations will be 1.25%, while the deposit rate will reach 0.75% and the loan facility 1.50%.
Highest level since 2011
In this way, the money price has reached its highest level since 2011, when the ECB began a trajectory of monetary stimulus that lasted more than a decade and led to negative interest rates.
Following this move in monetary policy, Euribor has risen in its daily rate to 2.015%, compared to 1.903% on the previous day.
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The 12-month Euribor ended August at a monthly average of 1.25%, the highest level since May 2012. The indicator started at 1.85% in September and has not fallen below that level on a single day so far this month.
Increase in variable mortgages in Spain
The escalation of Euribor leads to an increase in the price of floating-rate mortgages that are due for revision. If September closed at 1.9%, a mortgage of €100,000 would become €84 per month or€1,000 per year more expensive.
Euribor can reach 3% by 2023
Asufin predicts that Euribor will reach 2.2% by the end of the year and expects it to reach 3% by 2023. HelpMyCash thinks it will be around 2.5% by the end of the year. They also do not rule out the possibility that it could rise to 3%, depending on how the European economy performs and whether the ECB raises interest rates again in 2022 or twice during the October and December meetings.
Related post: New increase in Euribor heralds the end of cheap mortgages in Spain
