Good News for Mortgaged Homeowners: Euribor Shows Biggest Annual Drop Since 2013

by time news

2024-07-12 14:17:13

Los mortgaged They are lucky. After a year of suffering from constant increases i euribor, This summer, a breath of relief is coming to the mortgage market. As we have already said, the indicator has most of the variable mortgages in Spain In July, it began its path towards the biggest annual drop since 2013.

With almost half a month already completed, we do not leave that path and today euribor write down the differential year on year lowest since June 2013: -0.5605. This data will leave savings of more than 1,000 euros for many mortgaged that they renew their loan this month of July, when comparing the average data, which currently stands at 3.5885% with one of the highest in 2023: 4.149%.

With a meeting still pending for this month, the European Central Bank (ECB) taught the path of rest interest rates months ago, and this can be seen in the Euribor, which stopped rising a little and started to fall.

In his final appointment, the fourth point drop was the end of a script that had been written for weeks. This month of July they are expected to continue, but the reading of the experts is that a new dropeven more so after learning that the ECB ‘hawk’ validates two further rate cuts this year.

At the moment, banks operating on the secondary market are lending money to each other at an average of 3.6% where euribor 12 months. We have 15 more days to find out the average for July, and if it continues like this it will be around the lowest of the year.

How much is the mortgage going down in July?

For now everything that is lowered the euriboralthough it is small compared to last year’s big increases and pending the new ECB meeting, it is good news for mortgage holders.

So how much will the mortgage go down in July? According to iAhorro’s calculations, someone hired his variable mortgage of 150,000 euros in July 2023 with the Euribor at 4.149% and his fee was 796.43 euros per month with the current review (the Euribor is at 3.5%) you will pay a monthly fee with a reduction of 49 euros per month or, in other cases 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.

How is the Euribor today?

The Euribor today stands at 3.56% and takes the monthly average 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 to renew their credit July: 4.149%.

#Euribor #remains #track #biggest #annual #decline #years

You may also like

Leave a Comment