Euribor falls to lowest daily rate in two years – Idealista/news

The 12-month Euribor rate fell to its lowest record in two years.after the European Central Bank (ECB) cut official interest rates again last week, for the second meeting in a row, to 3.25%.

Specifically, The daily Euribor rate today was 2.630%. a level that has not been recorded since October 31, 2022, almost at the beginning of the tightening of monetary policy applied by the ECB.

From this point on, a growth phase began which saw the index, which is used as a benchmark for most floating rate loans concluded in Spain, reach a peak of 4.224% in mid-September 2024.

Taking into account this month’s performance, Euribor will close today with a monthly rate of 2.744%, reaching its lowest level since October 2022.

At this level, a person taking out a variable mortgage of €150,000 over 30 years with a differential of 0.99% plus Euribor and who has to renegotiate their mortgage in October will see a reduction in their monthly payment of around €125. , if the review is annual. If it is a loan with a semi-annual review, it will be around 83 euros.

From iAhorro they commented that as a result of the ECB’s rate cut, the fall will have “barely” an impact on the supply of mortgages, as most banks have already adjusted their offers for the rest of the year.

“Banks are already paying balances in this final quarter of the year and are offering very aggressive interest rates on their mortgages that we haven’t seen since 2022. At iAhorro, our users are already signing fixed mortgages with an interest rate that is very close to 2% TIN and even some mixed mortgages with an initial fixed rate below 1% TIN,” explained mortgage comparator director Simone Colombelli last week.