The index’s response to the ECB decision may take it as high as 4% by mid-year as interest rates continue to rise
The reaction of the Euribor to the first rise in interest rates in the euro zone this year has led the index to stand close to 3.5%, a reference that it had not seen since the end of 2008, when the previous financial crisis began. Specifically, this Wednesday it stood at 3.45%, a daily level that it had not reached for 14 years.
Although the first movements of the Euribor after the decision of the European Central Bank (ECB) to raise the official price of money were hesitant, finally the index most used to calculate mortgages has continued in the rise that it has been registering since last summer. Without truce.
With rates at 3%, it is most likely that the Euribor will continue advancing to the 4% level, which is no longer ruled out by any analyst and not even by the large Spanish entities. In the presentation of results that ended last week, all the banks indicated that the index could climb towards that reference during this first semester. It would be in anticipation of the new rate hike that Frankfurt could authorize at its meeting in March, and awaiting new subsequent decisions, depending on how inflation evolves in these months.
For now, with only eight sessions elapsed in February, the Euribor average is at 3.4%, which is a higher step compared to the 3.3% at which it closed the month of January. If it is compared with the records of last year for these dates, the index then moved at -0.33%. In negative. In other words, it has increased by almost 3.1 points, which entails a significant increase in the mortgage payments to which the monthly payment review is now due.
In this sense, the iAhorro portal points out that contracting a mortgage at a fixed rate of 3.8% would be profitable for those mortgaged in the future in the event that the Euribor experiences a pessimistic path and reaches the levels that were observed before. of the 2008 crisis. This counting on the index does not exceed the limit of 4% in which, it seems, it can be located.
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