2023-08-19 12:03:44
There is no doubt that, during the last year, one of the words, in terms of financial issues, that has given the most talk is the Euribor. In a few words, the Euribor is the European interbank offer index. That is, the interest rate at which banks lend money to each other in the short term. The importance of this indicator lies in the fact that it is the reference for variable rate mortgage loans. Therefore, their behavior directly affects those who have contracted this type of bank loan.
Reasons such as inflation and the monetary policy of the European Central Bank have strongly influenced this indicator in recent months. Making hundreds of users with this type of mortgage experience excessive and consecutive increases in their installments. In fact, as Jorge Trecet, an expert in taxation and collaborator in Finect, a platform dedicated to informing, advising and studying financial products and services. The last average reached in the month of June of the Euribor had not been seen for decades. The figure of 4.007%, according to Trecet, is similar to that of 15 years ago during the 2008 crisis. And in July, as if that were not enough, it was 4.25%.
Let us remember that the increase in the Euribor has been felt gradually since January 2022, when it was in negative figures of -0.477%. And he closed that year with a percentage of 2,018%. For its part, during 2023, the index, located at 3.33% in January, has grown on average, 0.11% each month, until closing at the value indicated above for the past month. This evolution in rates has meant that, for those who have an average mortgage of 150,000 euros for 25 years. Monthly payments have suffered an increase of almost 250 euros per month.
Considering the serious impact that these increases have on the family economy and, in turn, on the consumption capacity of hundreds of families. Both users and experts wonder how much more the Euribor will continue to rise and when could more encouraging figures be expected? Well then, although as stated by Trecet, it is difficult to make forecasts about the behavior of this index. Some analyzes by experts and financial institutions such as Bankiter suggest that the Euribor will hit a ceiling in the remainder of 2023.
But, possibly, it will moderate in the coming years, descending to values of 3.70% in 2024 and 3.20% in 2025. This, speaking of the 12-month Euribor, which is the most used for calculating mortgages. All this will clearly depend on how the global economy continues to behave and the repercussions of external factors. Where the situation in Ukraine, or the US elections in November 2024 may be decisive, as stated in Bankiter’s Quarterly Strategy Report.
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