The twelve-month euribor was quoted on Tuesday at its lowest level in almost three months.
Finland the most popular mortgage reference rate, the twelve-month euribor, has fallen to its lowest level since February.
The interest rate was quoted at 3.647 percent on Tuesday. The last time it was at a lower level than this was on February 8.
Nordea’s chief analyst Jan von Gerich pointed out the instant messaging service in X the year’s euribor has fallen for the third day of collections. As recently as Thursday, the interest rate was at 3.728 percent.
“In the big picture, the direction is downwards in the future as well, although based on the development of the last months it doesn’t necessarily look that way yet,” he wrote.
The one-year euribor reached its peak in the next few years at the end of last September. At that time, the reference interest rate was almost 4.23 percent.
Shorter on the other hand, the three-month euribor rate fell below 3.8 percent on Tuesday for the first time since last September. The interest rate settled at 3.788 percent on Tuesday.
“The drop in interest rates reflects the market’s strengthened belief in the approach of the ECB’s interest rate cut cycle,” commented OP Group’s senior market economist Jari Hännikäinen instant messaging service in X.
European the central bank has hinted that it will start lowering interest rates in June, if nothing surprising happens. The decrease in policy rates would probably also be reflected in the levels of Euribor rates.
However, the market’s expectations of a drop in interest rates have clearly calmed down. Now the market expects that the twelve-month euribor will be around 2.9 percent a year from now, while at the beginning of the year it was expected that the reference rate would have fallen to around 2.2 percent by the beginning of 2025.
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