The Euribor falls back to 2.4% on February in February. With this decrease, the mortgage index reduces the annual fee about 1,250 of those with a loan at average variable interest rate (from 150,000 euros to 25 years, with a type of Euribor plus a differential of a percentage point) at twelve months and update it next month.
The reduction in this case is just over 100 euros per month, because the February Euribor is smaller than that of the same month last year (when it stayed at 3.67% on average). But it is also lower than that of a semester. That is, if the mortgage review is every six months, the average fee will fall from 805 euros to 743 euros. Therefore, the mortgaged will save about 62 euros per month, just over 370 euros a semester.
The Euribor transfers decisions about official interest rates of the ECB. The monetary institution cut at the end of January the ‘price’ of money in the eurozone other 0.25 points to 2.75%. It is the fourth consecutive drop, and the fifth since June. And more cuts are present in their road map in the coming months, although voices begin to arise in favor of stopping this improvement in financing conditions, as explained in this information.
“The interest rate of 2.75% is still restrictive, too restrictive for the current state of weakness of the eurozone economy,” said the global manager of Macroeconomics of ING Research, Carsten Brzeski.
However, the German ‘hawk of the ECB taught its claws At a first level conference This same week by stating that “we can no longer say that our policy is restrictive.” With this position, Isabel Schnabel, of the Executive Committee of the institution that decides the monetary policy of the Eurozone, indirectly asks or moderate the decreases of official interest rates.
“Although inflation has receded and the restrictions of monetary policy have been reduced, current market prices suggest that maintaining price stability will require higher real interest rates in the future than before pandemic,” said the German. Isabel Schnabel’s main argument is that “the growing geopolitical fragmentation, climate change and labor shortages pose objective risks of increasing inflation in the medium and long term.”
The truth is that the activity in the Eurozone assembly is stagnant, especially in Germany, with problems such as the lack of public and private investment for energy transition, defense or digitalization; the concrete difficulties of the industrial sectors to compete internationally; the escalation of a world commercial war; or fiscal imbalances, mainly from France. In this context, Spain is the only positive exception among European partners.
Until now, the ECB has prioritized the need to breathe oxygen to economic activity. The moderation of inflation towards the objective of 2% on average in the eurozone – in Spain it rose to 3% in Frebrero for electricity – has allowed the monetary institution presiding over Christine Lagarde to leave the noise of tariffs, commercial war and tax declines that comes from the United States, and that is a threat of a new rebounds of the prices increase of the Atlantic.
#Euribor #falls #February #lowers #mortgages #euros #year
