The Euribor, index to which most of the mortgages are referenced at variable type, brand This Monday, March 24, 2025 a daily data of 2,366%which means the sixth consecutive fall in this month of March, specifically, at 0.005 basic points with respect to the previous day and is already close to annual minimums, which are located at 2.35%.
Thus, the provisional average of the month of March is 2,418%, still slightly above the previous month. If the descents continue, the index could bring good news for the mortgages again, which At the moment they will not see the fees of their mortgages.
This March has been marked by the European Central Bank meeting (ECB), which Interest rates at 25 basic points have fallen again For fifth consecutive conclave up to 2.5% in the deposit rate, accumulating a total of 150 basic flexibility points since June 2024. At the same time, the Fed, on the day of last Wednesday, maintained, as planned, stable interest rates in the range of 4.25% to 4.50%.
What will happen to mortgages?
The monthly Euribor data directly affects the mortgage reviews, since the banks recalculate the variable mortgages with the monthly average, uploading or lowering compared with the data of six or twelve months ago.
Those who have a mortgage review in March will see the amount of their quotas.
Thus, the first fact that must be taken into account is that of the monthly closure of twelve month ago, precisely in March 2024, when the Euribor had just left a resounding bullish streak. Specifically, the Euribor closed that month at 3,718%, a figure that is 1.29 basic points above the current Monthly average of March 2025 (2,428%). Thus, those who have a mortgage review in March will see the amount of their quotas.
To see it with an example, for a mortgage of 140,000 euros to 30 years (360 months), with a 1% differential and taking as reference the month of March of the year 2024, when the Euribor closed to 3,718%, The monthly fee was 727.61 euros.
Now, with the provisional average of March 2025, which is located at 2,418%, the mortgage share of the owners who have review in February will fall to the 622.27 euroswhich means that They will pay 105.34 euros less than a year ago.
How is Euribor calculated?
The Euribor responds to the name European Interbank offered rate and is calculated through a panel of European banks that report every day to which rate interbank loans are made. As of 2020, the calculations are made hybridly. Panel data is included, but also the estimates of the market itself, with the aim of reducing volatility and the risk of manipulation, to which these indices were submitted at the beginning of the century.
The panel consists of 18 European banksamong which are Santander, BBVA, Barclays, Deutsche Bank or Unicredit.
Every working day at eleven o’clock in the morning, the average interest rate is published in which the financial institutions lend capital to One week, one month, three months, six months and 12 months.
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