The Euribor, the reference rate to which the majority of variable rate mortgages in Spain are linked, aims to close December at around 2.43%, thus chaining nine consecutive months of decline. The mortgage benchmark is going to close 2024 with the largest annual drop since 2012 and points to new declines next year, given the expectation that the European Central Bank (ECB) will approve new interest rate cuts in 2025.
In the absence of the final figure for this Tuesday, which will only change the indicator by a few hundredths, the average of the 12-month Euribor will be around 2.434% in the year that is now ending. This represents a decrease of 7.2 basis points compared to the November figure (2.506%) and a significant cut of 124.5 basis points compared to a year before, when it was 3.679%. It is the lowest level since September 2022.
This data implies that a person who has contracted a variable mortgage of 150,000 euros for 30 years and with a differential of 0.99% plus Euribor and must review their interest rate with the December Euribor will register a decrease in their installment of 107. 94 euros per month. This is equivalent to 1,295.28 euros per year. Here you have a calculator to check how much your mortgage will go down if you have contracted a variable rate loan.
This calculation implies the maximum level of decrease for a person who has contracted a mortgage with that financed level, since since it is a review, at the beginning of the loan (that is, there are 30 years left to amortize), the change in the rate The interest rate has much more impact as there is a lot of principal to amortize.
This data implies that a person who has contracted a variable mortgage of 150,000 euros for 30 years and with a differential of 0.99% plus Euribor and must review their interest rate with the December Euribor will register a decrease in their installment of 107. 94 euros per month. This is equivalent to 1,295.28 euros per year.
Forecasts indicate that the falls in the Euribor will continue in 2025, once the inflation crisis that led to the Russian invasion of Ukraine has been overcome. In her last press conference in December, the president of the European Central Bank, Christine Lagarde, was confident that prices would evolve towards the theoretical target of 2% in 2025 and noted that past shocks were already “dissipating” and were no longer being transmitted. to prices, while admitting the stagnation of economic growth.
“The Euribor has fallen again in December, but it has not done so at the same speed as during the previous months,” says Simone Colombelli, Mortgage Director of the comparator iAhorro, who adds that this indicator is “replenishing its strength to return in January.” with more downward adjustments in both daily and monthly values.”
From the Kelisto comparator, they consider that with the decreases that the ECB is preparing for next year, the Euribor will “be around 2% for the second half of next year and fall below that figure (to around 1%). .75%) at the end of 2025”, indicated Kelisto spokesperson, Estefanía González.
Source: www.eldiario.es
