Euribor rises in May and continues to make mortgages more expensive

euribor In twelve months, it posted a new monthly increase and for the first time in more than six years, trailed the negative base in April to close May at 0.287%, which would drive the price of convertible mortgages. referred to this index.

Euribor has been anchored in negative territory since 2016 due to the over-expansion policy of European Central Bank (ECB) continues its growth following a change of discourse by the European body, to support recovery in the euro area, which will soon raise interest rates to combat the rise of inflation.

In July

ECB President Christine Lagarde recently revealed that the meeting of government council Next July would be the right time for the entity to raise interest rates for the first time in more than a decade in the euro area.

Lagarde has pointed out that, on the basis of perspective Currently, the agency is likely to be in a position to leave negative interest rates behind by the end of the third quarter.

this generalization monetary politics This has propelled Euribor to a strong growth in the chain since the beginning of the year, going from a monthly rate of -0.502% on December 2021 to marking a positive value of 0.013% last April.

This Tuesday, the last day of the month, it has recorded a daily rate of 0.390%, which is an average of 0.287% for the month of May. if he bank of spain Confirms these figures, this would mean an increase of 27 basis points in the month and 76 basis points compared to -0.481% recorded a year ago.

The twelve-month Euribor is the main indicator to which convertible mortgages in Spain are referred. As a result, its increase leads to an increase in the fees paid. Mortgage,

If the index closes in May at 0.287%, then a 20-year mortgage of 150,000 euros with a spread of euribor The +1% that this review touches on will experience an increase in your monthly fee to 51 EUR per month, or which is the same, 613 EUR per year.

mortgage

Obviously, this growth in variable rate mortgages will continue. bankinter analysis department Euribor is estimated to close at 0.4% in December 2022 and 0.8% in December 2023, while analysts at Caxabank say the index could reach 1% next year.

iAhorro’s director of mortgages, Simone Colombelli, suggests that the year 2021 may end with an Euribor of around 1.35%. “These calculations are only a mathematical estimate, but, if they are met, we will end the year with figures for 2012, when Spain was still coming out of the 2008 economic crisis,” he explained.

Lagarde has reported that negative interest rates are likely to be left behind by the end of the third quarter.

Despite the rise in mortgage payments, iAhorro experts point out that those who had variable-rate mortgages had beneficiary For a full year of a very low Euribor, returning to its most normal territory.

“What they experienced in 2021 is an extraordinary situation, they have enjoyed good conditions for 12 months, but what they are experiencing now is not catastrophic either: if their interest rate is around 1%, then It is still much better than what we experienced years ago”, he analyzed colombelli,