Rückgang des 12-Monats-Euribor im August 2023: First easing since January 2022, but mortgage costs remain high
The 12-month Euribor, an index for variable-rate mortgages in Spain, saw its first monthly decline in August since January 2022, with the previous monthly average standing at 4.073%. This is lower than the July figure of 4.149%, but still higher than in August 2022 (1.249%). The decline will nevertheless lead to a further increase in mortgage payments. For example, someone with a variable-rate mortgage of 150,000 euros will see their monthly payment increase by around 240 euros.
Experts believe that this decline is only a temporary pause and that the Euribor could continue to rise. They expect decisions from the European Central Bank (ECB), which could announce further interest rate hikes in September. This is supported by voices within the ECB, such as the President of the Bundesbank, Joachim Nagel, who suggest that it is too early to consider a change in monetary policy.The rise in Euribor is also having an impact on the mortgage market, with a trend towards early repayment of variable rate loans and renegotiation of terms. More than 1.3 billion euros were renegotiated between January and April, which is three times more than last year.
Experts advise converting variable to fixed or mixed mortgages now, as there are offers with fixed rates of almost 3%. They emphasize the importance of negotiating with banks to get individual offers and compare them.
Source: Idealista News
