The 12-month Euribor shoots up this Thursday, March 2, to 3.821% in its daily price after listening to the president of the European Central Bank (ECB), Christine Lagarde, who confirmed this morning in an interview on ‘Antena 3’ that the rates will rise in March and also in May, with which the official rates can reach 4% in a few weeks.
He also said that they do not foresee rate cuts until 2025. “Interest rates will not return to where they were a few years ago” from emotion when remembering his family. Lagarde has not missed the opportunity to criticize the government’s fiscal policies because they add pressure to inflation and force it to raise rates.
3.78% in two sessions and is drawing for the first time a year-on-year differential of more than 400 basis points, or 4 percentage points, the largest jump in its history that will affect the revisions of mortgage payments starting this month.
The tension in financing conditions between banks is progressively reflected, month by month, in the increase in existing mortgage costs and in the fact that new mortgages are becoming more expensive. The bank is offering fixed loans above 5% pushed by variable rates.
According to industry estimates up to September, the global impact on Euribor-linked mortgages will mean 15,000 million euros in the rolling year in interest margins for banks. If in 2017, the index marked the cost of 90% of active mortgages, in 2022 that percentage has dropped to 75%, according to data from the Spanish Mortgage Association (AHE).
The last photograph of the Spanish mortgages of the AHE at the beginning of 2022 placed their outstanding balance in an average outstanding term of 10.6 years and an average amount of 82,300 euros. From there it is extracted that a volume of 345,000 million euros and slightly less than 4 million mortgages are exposed to the real escalation of the Euribor since the beginning of last year.
