Euribor falls to lowest level since 2023

Madrid (EFE).- The annual Euribor rate, the indicator most often used in Spain to calculate variable-rate mortgages, stood at 3.503% this Wednesday, the lowest level since March 2023, suggesting new cuts in the next reviews.

After five consecutive sessions of declines, the July average falls to 3.57%, down from 3.65% recorded in June.

The cut comes ahead of a meeting of the European Central Bank’s (ECB) Governing Council on Thursday, although analysts do not expect interest rates to be cut.

Euribor, which stood at 3.602% last Wednesday, is now at 3.503, its lowest level of the year.
In June, Euribor recorded an average rate of 3.65% and has been declining for three months in a row.

The rate started the year at 3.609% (January average), rising to 3.671% in February and 3.718% in March.

Descending path

From there it began its downward path due to forecasts of interest rate cuts in Europe.

In April, the figure fell to 3.703%, and in May it was 3.680%.

If Euribor had ended the month at 3.57%, mortgages with a variable interest rate that is reset annually would have become cheaper, as the rate stood at 4.149% in July 2023.

Likewise, the average for July is likely to be below the level recorded six months ago (3.609% in January).

On June 6, the ECB Governing Council cut interest rates for the first time since March 2016, which was highly anticipated by investors.

The base rate fell by 0.25 points to 4.25%.

However, those in charge of the ECB avoided charting a specific path for the rest of the year.