The key is to lower the interest rate on your mortgage in the coming months

2024-09-02 05:27:20

After the pandemic broke out, the global economy suffered a severe blow from which we are still recovering. The increase in energy caused by savings, added to the reduction in the supply of some products caused by the war in Ukraine, caused an unprecedented increase in prices and inflation of more than 10%, with olive oil and oil in the head. The main banking institutions of the world (the European Central Bank and the Federal Reserve) quickly began to raise interest rates to reduce this demand.

For a long time these interest rates have been through the roof, causing an increase in the price of prime credit indexes and, especially, mortgages. In Spain, families with loans linked to Euribor have suffered major imbalances in their household finances, while families with fixed rate loans are breathing a sigh of relief.

In early June, The European Central Bank (ECB) reduced interest rates by 25 basis pointsthat is, from 4.5% to 4.25% after several updates in which the rates did not change. In this way, Christine Lagarde ended the increase in the price of money starting in July 2022.

| Think Big Empresas

Why might rates start to fall?

Some world economists are starting to predict a reduction in rates and, therefore, more wind for families and small businesses, which will be able to access credit more easily. The United States Federal Reserve (FED) has met investors’ expectations and has kept interest rates around 5.25 and 5.5% for the eighth time. The truth is that it doesn’t fix them down, but they don’t keep rising either.

The next meeting is scheduled for September 18, when many experts predict that the expected rate cut will occur.

Domino effect in Europe

Economists of Spain and Europe believe that in the fall there may be an impact and that the European body of Lagarde will be infected by the decision of the United States and continue to bet on a small rate cut and continue.