Good news for adjustable rate mortgage holders: bills will become cheaper in April.. Specifically, the aforementioned figure closed at 3.703%, down from 3.757% last year. Pau A. Montserrat, CES member, UIB professor and economist at FuturFinances.com, notes that “the savings are small, but they reverse the trend that we have suffered in recent years, as interest rates fell in April.” 2022 negative.”
Plus, he has more good news for those with adjustable rate mortgages. “Given that last year the values began to exceed 4%, and the current trend is a gradual decline from 3.7% until June or September, the European Central Bank (ECB) also decides to lower its rates, it is very likely that reviews will follow the same trend until the end of the year: reduction of commission for each review“
How much will your mortgage go down?
Montserrat carried out the calculations and The average mortgage in the Balearic Islands will increase from 1,064 euros per month to 1,058 euros. This is an average reduction of 6 euros, i.e. 72 euros per year. In the case of Spain as a whole, the fee will increase from 777 euros to 773 euros; This represents a reduction of €4 per month and €48 per year. “Although the contraction is small, the important thing is that it marks a clear change in the trend already expected last minute. I insist that mortgages will begin to be reduced from April 2024 and this trend will continue.
The above-mentioned economist argues that “the intensity of the contraction certainly depends on the speed of economic growth.” ECB in reducing rates. Some analysts are betting on the first cut in June, others in September, with some consensus that there will be at least two cuts of 0.25 percentage points each this year. This will mean a reduction in the ECB’s official fixed rate from the current 4.50% to 4.00% at the end of the year. That’s why, “We’re leaving behind the hellish mortgage season of rising rates. and we are fully entering its spring, warm, but with a drop in temperature.
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