All those people with variable mortgages, controlled by Euribor, have not had good times in recent months. This group of people has been the main victim of the unstoppable rise in interest rates of the European Central Bank (ECB) and they are experiencing increasing monthly increases in their mortgage payments.
However, It seems that the situation is clearing up a little. So and as published by the Actives portal of Prensa Ibéricahe Euribor twelve monthsthe benchmark index for variable mortgages sold in Spain, this Monday increased its daily rate to 3.751%, while the provisional average for the month of December is 3.773%.
If the month ends like this, this figure would represent the third monthly decline of the year, returning to May levels and the first reduction in variable real estate loans which are reviewed every six months from May 2022.
In June, Euribor stood at 4.007%, so anything lower than this will result in lower mortgages which will be reviewed every six months. Likewise, this also represents a thread of hope for those who have a mortgage loan revisable every twelve monthssince the scenario is that central banks suspend the rate hike started last year to fight inflation.
Euribor, the index to which they are linked 3.7 million of the five million mortgage loans in Spain, In November it stood at 4.027%which implies that he recorded his second fall month after month after that recorded in August and the highest since July 2020, after climb 4,662 points percentages in 22 months of unprecedented increases, from -0.502% in December 2021 to 4.149% last October.
The ECB decided to maintain its interest rates after raising them ten consecutive times at its last meeting, held on October 26. Euribor hit its highest level since 2008 in October when it hit 4.160%.
When will the fall in mortgage prices be felt?
According to the Foundation Savings Banks (Funcas), Not everyone will notice the price drop at the same time, but it will depend on how many mortgage reviews each year.
In this way, those who update their mortgage twice a year, they will notice the reduction before anyone else, especially in January 2024. On the other hand, those who only examine it once will not notice it, at least until April 2024.