The European Central Bank (ECB) will stop buying countries’ debt in July, and will start raising interest rates soon after. This action will have an impact on issues like mortgages, which economists love. Jose Maria Rotellar Counting is encouraged.
The effect on mortgage payments will depend on the amount, duration and level of interest rate increases. According to Rottler, for a twenty-year financing, the increase in monthly mortgage payments would be between 35 and 145 euros, depending on whether interest rates increase by 0.5 or 2 points, for a financing of 150,000 euros. “If we go to the amount of 500,000 euros, the monthly fee will increase to between 115 euros – for a 0.5 point increase- and 490 euros – for a double digit increase”, Roteler indicates.
If the term is extended to 25 years, the monthly increase becomes between 36 and 150 euros for one of the 150,000 euros financing and between 120 and 500 euros for one of the 500,000 euros.
For a period of 30 years, monthly installment increases run between 37 euros and 176 euros to finance 150,000 euros; and between 120 euros and 520 euros for a mortgage of 500,000 euros.
If we go over the 35 year period, the monthly installment increase will be between 38 euros and 162 euros, for 150,000 euros. For a mortgage of 500,000 euros, the monthly installment will increase to between 126 euros and 537 euros.
growth is not worrying
The Spanish bank believes that the increase in interest rates in the eurozone will not be too sudden. He estimates that it will not have much impact on India. convertible mortgage Nor in the economy of families in Spain.
This was explained in a meeting by representatives of ING, BBVA, Caixa Bank and Abanca online Organized by real estate platform Fotocasa. In this they want to send a message of peace to the people who have pledged and have denied that there is any housing bubble in the Spanish market.
As he explained, it is true that euribor It has risen in March and April, but remains at 0.24%. Analysts expect it to close the year at 0.40%, a “largely contained” level.
“If we transfer an increase of 50 basis points to an average mortgage of 100,000 euros, we are talking about a 25 euro increase in monthly payments and about 300 per year.” The loan is a bit more expensive, but efforts of families It remains at 26%, “far from worrying levels,” he has said.
On the other hand, all of them have assured that institutions do not think «tap off» To pledge when an increase in the price of a currency in the euro area is a fact.
The ECB has clearly stated that it will make its decision once federal Reserve The US will update its forecasts this summer, not earlier, but we should note that the US is a more homogeneous economy than the European economy and with lower levels of unemployment.
According to these experts, rates could be around 1.5% “at the end of 2023”, after several increases starting this summer, with Euribor around 0.40% in 2022 and 1% in 2023; A “very contained” scenario.