The Euribor closed the month of March at 3.718%. This figure remains above what was recorded a year ago, so it will only relieve the pockets of a few mortgage holders. All holders of a variable rate mortgage loan with annual renewal will face a new increase that is far from last year – which saw their installments increase by 600 euros per month in some cases – but which represents another year of facing to the 2023 increase plus the amount that each one has to face this year. The average mortgage of 100,000 euros, for 25 years, increases by 4 euros in the monthly payment and almost 49 euros in annual terms, waiting to go down in the next review. However, the figure noted brings good news for all those who make semi-annual renewals since, compared to the last review in September 2023, they will see a monthly relief of around 25 euros per month in their installments.
The Euribor in April
From Asufin they assure that at the end of April, and subsequent ones, if expectations are met, we will see reductions in fees both per month and per year, with significant amounts, up to approximately 15 euros per month, and 176 euros per month. anus.
“To the extent that March has closed the month lower than the average and that the start, which reached 3,744%, everything indicates that we will witness a downward closing of April.” In 2023 the Euribor for April closed at 3,756 and the month starts already below.
When will the Euribor go down?
Simone Colombelli, director of Mortgages at the iAhorro mortgage comparator and advisor, assures that this March data is no cause for alarm: “We are in a moment of stability in terms of interest rates, which implies that the Euribor also registers slight falls between one month and another, like those we saw in November and December of last year, which are later compensated with new increases like the ones we are seeing now and have seen in February. And until the ECB lowers rates, there will be no decisive movements in the Euribor because the difference between both values is already very high.”
In fact, on March 7, the European Central Bank (ECB) chose to maintain rates at 4.5% and Christine Lagarde, the president of the organization, dropped that it is likely that the drop will occur at the meeting on March 6. as a junior. “It is very likely that the European body will lower the official interest rates by just 0.25 points to leave them at 4.25”, so this drop will not change the outlook much either,” Colombelli emphasizes.
How is the mortgage offer?
Taking this context into account… What strategy are the banks carrying out? Have the interest rates on your fixed or mixed mortgages increased again? Are they bidding again for the variable mortgage? “Last year the offers were stagnant and there was hardly any ‘war’ between the entities to attract clients, but so far in 2024 this position has completely changed: the bank is hungrier and makes very competitive offers, trying to position itself better than its competitors to take as many customers as possible,” says the mortgage director.
How are you?
The Euribor (in English, Euro Interbank Offered Rate) is a market reference interest rate without guarantees for different maturity periods (one week and one, three, six and twelve months). The Euribor is calculated by the EMMI. This institution defines the Euribor as “the interest rate at which credit institutions from countries belonging (or formerly belonging) to the European Union and the European Free Trade Association can finance themselves in the wholesale market without guarantees.”
