Euribor is close to closing November below 2.53%, its eighth decline.
The annual Euribor rate, the indicator most used in Spain to calculate variable mortgages, is close to closing November lower again, below 2.53%, marking an eighth consecutive month of declines.
Although still five sessions left At the end of the month, the preliminary average rate for November will be 2527%, this is the lowest level since September 2022.
Investment Director at Diaphanum, Miguel Angel Garcia predicts that Euribor will continue to fallor to the extent that European inflation is also doing the same, which he considers “highly likely”.
Garcia also said that he does not rule out that at the next meetings of the European Central Bank (ECB), and not only in December, but also at the next one, There is a reduction in interest rates by about 25 basis pointsuntil reaching a neutral level, which will be about 2-2.5%.
In this sense, it was believed that Euribor was already taking these cuts into account by trading around 2.5% average rateor even lower at the intraday rate.
For their part, Ebury analysts note that Euribor continues to decline, but more slowly, given market skepticism regarding reduction of fifty basis points at the next ECB meeting.
“As December 12, the ECB’s target date for the next cut, approaches, the Euribor rate has resumed its slow downward movement. this decline has slowed as markets have become more skeptical given the possibility of a reduction of fifty basis points,” they argue.
In this sense, they add that the latest statements by those responsible for the ECB were “more aggressive line”and newly released data on eurozone wage growth in the third quarter “will do little to reassure the central bank, which does not believe inflation is any longer under control.”
Euribor started the year with 3.609%whereas in February it rose to 3.671% and in March to 3.718%.
Nevertheless, the downward trend began in Aprilas it closed at 3.703% that month; in May – 3680%, and in June – 3650%. In July it fell to 3.526%; in August – 3.166%; in September – 2.936%, and in October – 2.691%.
The continued decline in the Euribor rate contributes to reduction of commissions variable mortgage loans. For example, in the case of a variable mortgage of €150,000 with a term of 25 years plus interest of 1% of the provisional November Euribor rate, the savings would be around €1,500 per year.
In case mortgage 300,000 euros Under the same conditions, savings after the fall of Euribor this month will exceed 3000 euros per year.
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