Euribor will close October with a new fall and mortgage prices will continue to fall | News

The 12-month Euribor rate, the indicator most commonly used in Spain to calculate variable mortgages, will close sharply lower in October. average rate is about 2.72%the minimum level for the last two years and new installment savings on these loans. On its final day of trading, last Friday, Euribor fell significantly, reaching a daily rate of 2.565%, its lowest level since October 2022.

Thus, according to preliminary data, the average Euribor rate reaches 2.718% in October, and if confirmed, it will be lower than the 2.936% achieved in September. The new Euribor drop that will occur in October will lead to a fall new reduction in variable mortgage paymentssince a year ago, in October 2023, the figure was 4.16%.

As an example for average mortgage 150,000 euros for 25 years plus interest of 1% on Euribor, the commission will rise from almost 891 euros to 768 euros, which represents saving 132 euros per month

or about 1470 euros per year.

In case mortgage 300,000 eurosunder the same conditions, The savings will be approximately 249 euros per month. or about 3000 euros per year.

Descending path

Euribor started the year with a rate of 3.609%and in April a downward trajectory began, associated with a decline in euro interest rates, which continues. And in October, with four sessions left in the month, Euribor hits a provisional rate of 2.718%, its lowest level since October 2022 and its seventh straight fall.

In this context, analysts predict that Euribor will stabilize and At the end of 2024 it will be around 2.5–3%..