The Euribor, an index to which most of the mortgages are referenced at a variable type, closes the month of March with a new one, although adjusted, intermencing fall. The final average of the month of March 2025 remains at 2,398%. This last day has meant a new cut, which has left a fact this Monday, March 31, 2025 to 2,306%, a level that did not touch since September 2022. Both this and the falls of the days prior to the closure have made the Euribor closure downward, although this decrease has been very restrained, showing a stabilization trend In the mortgage index.
The average of the month of March falls below 2.4%, which is good news for the mortgages, since Continue, as planned, the bearish streakalthough much more contained than the forecasts anticipated a few months ago. In fact, the month of February closed to 2,407%, a difference of only 0.009 points.
Although this month began with strong daily increases, which endangered the aforementioned bearish streak, finally the Euribor gave a respite and chained eight consecutive falls, which They supposed a total of 105 basic descent points To end the month, closing backwards after a January in which the 2.5% barrier at the end of the month was exceeded.
To put context of what happened this month, we must take into account the chaos unleashed by Trump and his tariff ads. The US commercial policy triggered the fear of a rebound in inflation and an economic brake that made the profitability of the debt in the market grow, which caused the Euribor to ascend in the first part of the year.
The decisions of the central banks to lower the pressure on inflation, allowed the index to resume the descents. On the one hand, the expectations of lowering types were met at the ECB meeting, which subtracted 25 basic points per fifth consecutive conclave up to 2.5% in the deposit rateaccumulating a total of 150 basic flexibility points since June 2024. A week later, the Fed maintained, as planned, the stable interest rates In the range of 4.25% to 4.50%, but changed its intention to lower types for this year.
The best news is taken by the mortgages at a variable type whose reviews are made annually (12 months). To those who have a review in March, they will see their mortgage quotas down strongly, since a year ago the Euribor closed at 3,718%, that is, 1.32 points above the current monthly mean (2,398%).
What will happen to mortgages?
The first thing to know is that the monthly data of the Euribor directly affects the mortgage reviews, since the banks recalculate the variable mortgages with the monthly average, going up or down compared with the data of six or twelve months ago.
Thus, the monthly closure of twelve month ago, precisely in March 2024, when the Euribor had just left a resounding bullish streak, remained at 3,718%, A figure that is 1.32 points above the current Monthly average of March 2025 (2,398%). Thus, those who have a mortgage review in March will see the amount of their quotas.
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 final average of March 2025, which is located at 2,398%, the mortgage share of the owners who have review in February will fall to the 593.59 euroswhich means that They will pay 134.02 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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