Notice to Mortgage Owners: Rates Will Stop Falling From This Date
He Euribor twelve month period, index used to refer to most mortgagecontinues de-escalation and in September amounted to 2.94%, which is two tenths less than in August (3.17%). Thus, the index showed six consecutive falls and fell below 3% for the first time since November 2022.
This data favors variable mortgages that will see reduction of subscription fee by more than 100 euros. With a Euribor rate of 2.94%, the payment on a mortgage of €150,000 over 25 years will now be reduced by around €105 per month (€1,200 less per year).
Experts predict that Euribor could end the year below 2.5% thanks to the expectation of a new interest rate cut by the European Central Bank (ECB), and the market is already expecting the supranational organization to apply new rate cut at the remaining monetary policy meetings in 2024.
However, the good news for those with a mortgage may not last long. President of the ECB, Christine Lagarde guarantees that no designated road mapinhibiting euphoria. In response to a question from Italian MEP Stefano Cavedagni (Brothers of Italy) about further steps in monetary policy, he said: “We are not committed to a particular previous rate trajectory. Looking Ahead, Market Outlook and Financial Data they do not currently anticipate a return to the pre-pandemic ultra-low interest rate scenario.“
“Progress towards our inflation target allowed us to ease the degree of contractionary monetary policy in two stages: in June and September. Although it is expected that the road is full of obstacles in the coming months– Lagarde warned the Italian member of the European Parliament.