Euribor records largest increase in history

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MADRID – The Euribor continues to rise and the 12-month benchmark is at its highest level since 2009, closing September with an average yield of 2.233%.

This figure means that the indicator has almost doubled from month to month (it is 1.78 times higher than in August), after the largest increase in its history. For example, the Euribor rose from 1.249% last month to the current figure of 2.233%, almost one percentage point more.

The indicator reflects interest rate hikes by the European Central Bank (ECB), the latest this month, the largest in history. The ECB increased borrowing costs by 75 basis points after an earlier increase of 50 basis points in July.

Related post:Inflation Europe reaches historic record with even higher consumer prices in Spain

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The escalation of Euribor this 2022 is pronounced. In December 2021, the interest rate was not only negative, but at -0.502% it was at the second lowest point in history. Since then, the valuation has been unstoppable and is expected to continue rising.

Eurozone inflation for the first time 10%

The ECB has confirmed that there will be more interest rate hikes in the upcoming meetings. These will be reflected in mortgage payments. Friday, inflation in the eurozone was announced. With 10% reaching double digits for the first time in history. 

A charge for variable mortgages

The new level of Euribor means an increase in mortgage prices of 200 euros per month. In a year time it is an increase of almost 2,400 euros. This is with an average mortgage with a variable interest rate of 150,000 euros, according to financial comparator HelpMyCash. Experts predict that the indicator will reach 3% by the end of this year and continue to rise the following year.

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