The Euribor nightmare has disappeared throughout 2024. A year ago, the mortgaged They had behind them a year of constant increases in the Euribor, which reached 4%. The experts left as Christmas gifts that the indicator to which so many refer mortgages would start to go down. And they were not wrong. Today the average is 2.4%. Now that there are just under two weeks left until the end of the year in which it can be said that the mortgage market has recovered, experts predict a similar 2025 in mortgage matters.
The Mortgage Director of the iAhorro mortgage comparator and advisor, Simone Colombelli reviews the year 2024 and explains the reasons why mortgage holders have celebrated monthly reductions in their installments: “The interest rates Officials have fallen one percentage point (from the 4% with which they began the year to the 3% that we see this month of December) in this period; In recent months, the Euribor has once again recorded values similar to those recorded in 2022; and banks are already offering mortgages with very competitive interest rates, with fixed mortgages close to 2% NIR for the best profiles.”
and the mortgage war in banks’ offers will increase. This is because the European Central Bank announced last week at its last meeting of the year a new interest rate cut. The Euribor had already reflected for a long time what Christine Lagarde was going to do with constant drops. Such a decision will cause mortgage offers to go down again and it will be the banks that will reflect this throughout January. This 2025 “we must keep our eyes on inflation (in November it rose to 2.3%), but it is also necessary to encourage consumption for the economy to advance,” Colombelli details.
So what will happen in 2025 with ECB interest rates? The director of Mortgages at iAhorro is clear: “If everything remains the same, if the macroeconomic policies of donald trump in the United States they do not alter too much the pretensions of the European Union in the medium term and if there are no new wars that alter the general picture, it is most likely that Lagarde continue to apply small reductions in official interest rates.
Thus the scenario, in the meeting scheduled for January the ECB “could cut at least another 0.25 percentage points and in March (the ECB does not meet in February) apply another similar reduction. If so, the official interest rates would end the first quarter of 2025 at 2.5%, a very good figure that does not seem, given the current situation, at all unreasonable”.
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