Euribor Drops Today, Leading to Potential Mortgage Payment Discounts

by time news

2024-07-09 21:23:22

he euribor goes down today and continue on the path to greatness rebates on mortgages. The party for mortgages may be even bigger after yesterday’s ‘hawk’ validation of the European Central Bank (ECB) two further rate cuts this year. This Tuesday, July 9, the indicator referred to by most variable mortgages in Spain remains at 3.59% and is on track for the biggest annual decline since 2013. discounts in the mortgage payments. In June they already achieved discounts of more than € 700 annually on some of the housing loans signed. As the Euribor progresses this month, it would already exceed 1,000 euros.

How is the Euribor today?

he euribor today It stands at 3.593% and brings the monthly average up to 3.58%, far from the data that must be compared to know how much mortgage holders have to pay more or less if they do renew their mortgage loan this July: 4.149% .

When will the Euribor start to fall?

The director of financial investments at Mutualidad de la Abogacía, Pedro del Pozo, explained to Efe that the Euribor has been moving in “a rather narrow channel in recent months”, although he admitted that it is registered “clear relaxation” compared to 2023, when it reached levels above 4%.

When will the ECB cut rates again?

In this sense, it is certain that his prediction is likely to be the The ECB makes two cuts more rates in 2024, so it is expected that the Euribor will relax a little more during the year.

It is calculated that the indicator will remain at levels between 3.25 and 3.5%.

Why is the Euribor rising?

Del Pozo considered that a more negative behavior would be seen on the part of the euriborthat is, a rise in the indicator, there should be increases in the inflationwhich would leave interest rate expectations higher, “or rather the ECB would reduce the pace of rate cuts.”

How much does the mortgage go down in July

For now it doesn’t matter lowering the Euriboralthough not many are waiting for the new meeting already, it is good news for the mortgaged. How much is going to lower the mortgage in July? According to calculations by iAhorro, a person who contracted his variable mortgage of 150,000 euros in July 2023 with the Euribor at 4.149% and his payment was 796.43 euros per month with the current review (the Euribor 3.5%) will pay monthly fee with a reduction of 49 euros per month or, in other words, up to 588 euros per year. If we take this same example, but in the case of a mortgage whose initial amount is 300,000 euros, we see that the discount becomes 98 euros per month, 1,176 euros per year.

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