How this will affect your mortgage money and what will happen to it in the coming months, according to experts
How is he Euribor Today? This Wednesday, July 3rd, is an indication that most variable mortgage V Spain It rises to 3.596%, bringing the average monthly rate to 3.5%. The data is encouraging for everyone. pledged who will have to renew their mortgage in the seventh month of the year. price your new share This will compare with the 4.1% recorded a year ago, and both the annual and semi-annual reviews will be decreasing at this point.
How are things with Euribor today?
He Euribor today It is 3.596%. The data has been rising over these three days, but it is far from the significant growth that was seen every day a year ago. So much so that Euribor in July 2023 recorded one of the highest averages in its history, reaching 4.149%.
When will Euribor start falling?
Mutualidad de la Abogacía’s director of financial investments, Pedro del Pozo, explained to Efe that Euribor had been moving in a “relatively narrow channel” in recent months, although he acknowledged that it had registered “obvious relaxationcompared to 2023, when it reached a level above 4%.
At present, he added, the Euribor rate will reflect interest rate cuts in EuropeOn June 6, the European Central Bank (ECB) lowered its cash rate for the first time since March 2016.
When will the ECB cut rates again?
In this sense, he assured that his forecast is that the ECB will probably carry out two more rate cuts in 2024He therefore expects Euribor to fall slightly over the course of the year.
It is estimated that the rate will remain between 3.25 and 3.5%.
Why is the Euribor rate rising?
Del Pozo believed that seeing more negative behavior from Euribor, i.e. growth of the indicatorthere should be an increase in inflation, which will lead to higher interest rate expectations, “or, more likely, the ECB will slow the pace of rate cuts.”
What will Euribor be like in the coming months?
HelpMyCash.com mortgage analyst Michele Riera also stressed that the outlook for the coming months remains optimistic, as after the ECB’s rate cuts, The Euribor trend was downwardespecially during the last week, when its daily value crossed the 3.5% line.
The last time this happened was in February, Riera noted, but he cautioned that optimism should be tempered. In his view, banks are once again expecting, as in December, another ECB rate cut, which will likely happen between September and October this year.
However, the cut is expected to be only 25 basis points, which could lead to Euribor rising to between 3.25% and 3.5% by the end of the year, he calculated. Despite this, economist and co-founder of HelpMyCash.com Olivia Feldman warned of the risks associated with significant difference between ECB rates and the US Federal Reserve System (FRS).
And he cautioned that the outlook for rate cuts in Europe depends on economic stability and a further decline in inflation. Feldman also cited political uncertainty in France as a factor to consider.
XTB’s Joaquin Robles also believes Euribor will continue to trade around 3.5% until there is more clarity on the ECB’s next monetary policy moves.
“A inflation drop “could facilitate two further 25 basis point cuts before the end of the year, which could lead to Euribor reaching 3.25%. Our base case is therefore one rate cut in December and Euribor trading in a range of 3.65% to 3.3% between now and the end of the year,” he concluded.