Euribor falls by 2.5% and indicates a reduction in mortgage loans of almost 1,500 euros per year.

He Euribor It continues to break through descending levels and month after month pleases all those who have a home loan at a floating rate specified in the indicator. And that in the case of Spain they are the vast majority. Yesterday index It fell seven thousandths to hit a daily rate of 2.495%, its lowest level in two years.

As for the November average, Euribor currently stands at 2.571%. This is a slight decline from October (which closed at 2.691%), but a more than significant decline for those reviewing their mortgage annually, as in November 2023 the Euribor rate was 4.022%.

With a provisional average Euribor rate of 2.571%, an average mortgage of €150,000 with a term of 25 years, a spread of 1% and semi-annual review

will go away from availability contribution of €974.15 to another contribution of €881.66, representing a monthly saving of €92.5.. In case annual reviewthe quota will pass from 1003.81 euros to 881.66 euros, representing a monthly saving of 122.2 euros.. Or, what is the same, from 1466.4 euros per year.

Lower interest rates

If this month’s trend is confirmed and Euribor closes November with another decline, it will now have eight consecutive declines. And the most optimistic believe that his downward path is not over yet, given the decisions made European Central Bank (ECB) regarding interest rates.

At the last European Bank monetary policy meeting, held on September 12, the ECB decided to cut interest rates. The next meeting of the European Central Bank will take place on December 18 in Frankfurt and, depending on current economic data – mainly inflation and growth in the eurozone – it may propose a new rate cut that analysts take for granted.

Ebury, a global fintech company specializing in cross-border payments and currency exchange.believes that Euribor should will continue its gradual decline to 2% in the coming weeks.unless there are significant positive surprises in both inflation and economic growth. However Ebury Chief Risk Officer, Enrique Diaz-Alvarezbelieves that “the scale of new ECB cuts may be more limited than markets expect, given that the eurozone’s economic problems cannot really be solved by lower rates.”

“Short-term interest rates in the eurozone resumed their downward trend following the victory of Trump and the Republican Party in the US elections. The prospect of protectionist trade policies and tariffs targeting European industrial exports, especially from Germany, and the possible withdrawal of the United States from European defense issues are adding to the general sense of pessimism about the European Union’s economy, and it continues. put even more pressure on the ECB to cut rates in the coming months,” says Ebury’s chief risk officer.

Marcelo Siqueira, Head of Operations, Mortgage Advisory Baytecaguarantees that Euribor November could close around 2.5%“with the possibility that it could fall slightly below that figure at some time in the month.”

According to Siqueira, this confidence is based on the understanding that inflation in the eurozone has managed to stabilize and that the ECB is committed to promoting a “gradual economic landing to avoid recession.”