2023-07-05 15:55:46
The renewal of an average variable mortgage is located at the beginning of July in 250 euros per month, or what is the same 3,000 euros per year. The Euribor, the benchmark index for most variable mortgages marketed in Spain, closed June at 4.007%, which implies increases of about 250 euros per month.
The index thus exceeds the 4% barrier for the first time since 2008. The Euribor continues to break records not seen since 2008 and this Wednesday it reached 4.165%.
The interest rates set by the European Central Bank (ECB) are located in the euro area at 4%, so mortgages usually start from that key percentage. In the case of those already granted, those with mortgages who have fixed credit breathe easy, although those with variable debts do not.
Therefore, it is understandable that many mortgage holders ask themselves, when will the mortgages go down? The President of the Government, Pedro Sánchez, and the Vice President for Economic Affairs, Nadia Calviño, have committed to expand access to mortgage relief measures collected in the code of good practices to rents of up to 37,800 euros.
Calviño has indicated this Wednesday that this electoral promise, which would be one of the first measures to be adopted in a possible next legislature, has been defined because the economic situation is being better than expected and interest rates are rising more than expected.
Bankinter’s forecast
The bank led by María Dolores Dancausa has just updated its forecasts for the mortgage market and maintains that the Euribor will exceed 3% until 2025. Bankinter’s analysis department forecasts a price drop close to 5% between 2023 and 2024 and that the Euribor closes this year above 4%.
The Savings Banks Foundation (Funcas) places the annual average of the Euribor for this year at 4.25% and 4% in 2024. BBVA Research, for its part, believes that it could reach 4.5%. The forecast is that the European Central Bank (ECB) will continue with its current rate hike policy up to two more times this year, so the cost of money could reach 4.5% at the end of the year and hence its impact. in mortgages.
Related news
Faced with this circumstance, many mortgagees are amortizing part of their debt with the banks and renegotiating the conditions of the signed credits.
According to data from the Bank of Spain, compiled by the Spanish Mortgage Association (AHE), between January and April more than 1,300 million were renegotiated, triple that of last year. For its part, the amount of amortizations reached 8,326 million euros in the first five months of the year.
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