Euribor is stagnating at lows today and is opening the way to discounts of over €1,000.
He Euribor today stagnates at a low of 3.053%. At the door of the meeting held today European Central Bank (ECB)the indicator to which the majority belongs floating rate mortgage In Spain, the slow but unstoppable de-escalation continues. Today’s data still stands. minimums for a period of 15 months, which opens the possibility for mortgage holders who renew their mortgage in July this year to receive discounts on installments, which in some cases can exceed 1,000 euros per year.
on average for July The Euribor rate currently remains at 3.56%, down just 4% from the previous year, making the year-on-year difference the highest in 13 years, which also contributes to a significant reduction in mortgage rates, which they review annually.
reduction of mortgage payments It’s been a slow process and not as steep as mortgage holders who extended their mortgages at the start of the year would have liked – they even paid more in March – but the path is set to continue downwards, experts say.
As expected, the ECB kept rates unchanged. We must be very careful about the message and read between the lines of what the ECB President announces: Christine Lagardeafter a meeting at which the organization kept interest rates at 4.25% after cutting them last June. Experts have already noted that new drops will not wait, at least not until after the summer.
How much will mortgage rates fall in July?
For now, everything about the Euribor rate cut, albeit small compared to last year’s big hike and pending a new ECB meeting, is good news for mortgage holders.
So,How much will mortgage rates fall in July?? According to iAhorro’s calculations, someone who took out a variable mortgage in July 2023 for €150,000 with a Euribor rate of 4.149% and whose payment was €796.43 per month with the current revision (Euribor is 3.5%) will now pay a monthly payment discounted by €49 per month, or in other words, up to €588 per year.
If we take the same example, but for a mortgage with an initial amount of 300,000 euros, we see that the discount will be 98 euros per month, 1176 euros per year.