Euribor plummets: biggest drop in 15 years

Euribor has closed October at 2.691%this is the lowest figure since October 2022, and registers the biggest year-on-year decline since December 2009, nearly 15 years ago. Thus, the index is reduced by 0.24 percentage points compared to September last year and by 1.46 points compared to the same month of October 2022.

At this level, a person infected variable mortgage in the amount of 150,000 euros for 30 years with a difference of 0.99% plus Euribor and the need to review your mortgage in October will register reduction of the monthly fee by approximately 128 euros if the inspection is annual. If it is a loan with a six-month review, the savings will be about 86 euros.

“Given what we see, especially in recent days, we can say that we are in golden last quarter for mortgages. In October, Euribor recorded daily data of around 2.5%, something we have not seen in just two years (October 2022),” says Simone Colombelli, director of mortgage comparator iAhorro.

In fact, the comparator indicates that if the trend of the index continues as before, with a fall of about two-tenths every month, Euribor could end the year at 2.3–2.2%, which will lead to banks further reducing mortgage interest rates in 2025.

“In 2025, we could again see fixed mortgage rates around 1% NIR; perhaps 1.5% to 1.7% NIR for future mortgage holders with better characteristics. All forecasts lead us to 2025 will be a very positive year for the entire mortgage and real estate sector.Colombelli says.

HelpMyCash analyst Mikel Riera also agrees with Colombelli, believing that Euribor “has not yet touched the ground.” “This means markets are expecting more rate cuts from the European Central Bank both in December this year and in the early months of 2025,” the expert says.

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