EURIBOR TODAY | Euribor price today, June 7, 2024: new setback for mortgage holders
Everybody’s talking about Euribor, but why is this even necessary? Euribor, or the euro interbank offered rate, is the main index in setting type of interest a wide range of financial products, including mortgage loans. It is calculated daily based on the interest rates offered by a group of leading European banks and reflects the cost at which they lend to each other in the interbank market.
Since the beginning of 2024, its average value is 3.675%noting decrease -0.347 points compared to 2023 average (4.022%): 3.605% in January, 3.671% in February, 3.718% in March, 3703% in April and 3680% in May.
Today’s index June 7stays in 3701% (+0.017), while the average for June is still 3.702% (+0.022) and scheduled for this sixth month of the year in 3701%.
ECB and interest rates,light for pawned
Last October, Euribor reached its highest level in six years, reaching 4.16%. The European Central Bank (ECB) announced it would cut interest rates by 25 basis points – from 4.5% to 4.25% – following a slowdown in inflation in recent months. The body, chaired by Frenchwoman Christine Lagarde, puts an end to the rise in the price of money, which began in July 2022 to combat rising prices that were stifling the economy at that time due to the energy crisis of the war in Ukraine.
The forecast for lower rates saw the mortgage index close at 3.68% in May, and this will mean new credit reports will move lower in the coming months. On average, mortgages will become cheaper by 190 euros.
The future of interest rates
Opinions vary on how many additional cuts the ECB could make in 2024. Some predict another reduction by the end of the year.but everything will depend on how macroeconomic data and the global economic situation develop.
The Governing Council has planned other four meetings for the remainder of 2024 for eurozone monetary policy decisions: 18 July, 12 September, 17 October and 12 December.