Heels|Compared to June of last year, the annual euribor has decreased by 0.6 percentage points.
Finland the most common mortgage reference rate, i.e. 12 months euribor fell below 3.6 percent for a long time on Monday. Quotations this low were last seen in early February. The downward trend is also clear in the three- and six-month Euribor rates.
OP group’s senior market economist Jari Hännikäinen write message service in Xthat the interest rate market estimates that interest rates will slowly fall and eventually stabilize around 2.5 percent.
“In interest rate revisions, the interest costs are now updated downwards, regardless of which reference interest rate has been chosen – a little, but still,” Hännikäinen states.
The euribor for the year has already decreased by about 0.6 percentage points compared to the level of a year ago. The descent is noticeable and fast.
“The last time such a large downward revision of the interest rate was seen was on July 11, 2013 – it’s been a long time,” Hännikäinen points out.
At its height The 12-month euribor was last year in summer and early autumn. July and September of last year average readings were 4.149 percent.
Nordea’s chief analyst Jan von Gerich evaluate in Xthat the trend continues downwards.
“With these prospects, the European Central Bank (ECB) will next lower its key interest rate in September, which would strengthen the picture of lower interest rates in the future as well.”
The ECB lowered its key interest rates by 0.25 percentage points at the beginning of June. Euribor rates reflect and especially the 12-month Euribor anticipates the ECB’s key interest rate.
Euribor rates are determined daily on the basis of unsecured interest offers between banks. The panel that determines interest rates includes 19 European banks, which was joined earlier in June by OP Yrityspankki. It is currently the only Nordic bank in the panel.
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