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Home Mortgage | What is the Euribor rate today, March 1, 2024? Good news for mortgage owners

Euribor, the benchmark majority index variable mortgages sold in Spain, continues to cause headaches for many families. However, this Friday the index falls by five thousandths compared to the percentage reached this Thursday at 3.749%.

The core mortgage lending index ended February at 3.671% and will end a three-month decline: payments to some mortgage holders will become more expensive again from the 3.609% that ended the January average. The index, however, continues to decline from the highs reached in October, when it closed at 4.16%. It fell 4,022% in November and 3,679% in December. Previous highs date back to October 2008, when it reached 5.248%.

Euribor falls to 3.744% today up from 3.749% this Thursday. For mortgage holders who renegotiate their loan every six months, this reduction is already carried over to their mortgage. The six-month-old benchmark index closed at 4.073% (August 2023). Mortgages are always renegotiated monthly rather than daily. Those renewing annually won’t see their mortgage fall yet, as it was 3.534% in February 2023, although that’s expected in the coming months.

What will happen in 2024 with Euribor

The European Central Bank (ECB) decided in January to leave the eurozone’s benchmark interest rates unchanged for the third time. from October. To see a significant reduction in mortgage lending, the ECB’s decision to cut interest rates is key. However, the organization chaired by France’s Christine Lagarde has not set a timetable for rate cuts or made a clear statement on the matter, unlike the US Federal Reserve, which has confirmed it will lower the cost of money. events this year 2024.

European Central Bank (ECB) Vice-President Luis de Guindos has stressed in recent statements that the disinflationary process in the eurozone continues and price growth is expected to slow further throughout the year, although he stressed that there is no need to get ahead of ourselves as it will take some time before than we obtain the information necessary to confirm that Inflation is steadily returning to the target of 2%

.

Analysts believe that the first rate cut in the eurozone will occur this summer. Specifically, a panel of central bank experts consulted by the institution itself forecasts a moderate decline of 25 basis points in July.

Inflation rate Eurozone January declines to 2.8%which is one tenth lower than the 2.9% price increase at the end of 2023, according to data published by the community statistics office Eurostat.

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For people with an annual view, they will start to see lower payments when the average monthly rate is lower than what it was a year ago. In accordance with Savings Fund (Funcas)they won’t notice it until at least April 2024.

How Euribor works and its impact on mortgages

Among other things, Euribor is used by many banks as a benchmark index to determine interest rates on variable rate mortgages in Europe, which is largely the case in Spain. That is, interest on loans fluctuates depending on changes in this value: If Euribor rises, mortgages will become more expensive; If it falls, mortgages will become cheaper.. The increase in Euribor is a response to increasing tensions in the financial market. Increasing it means banks are charging higher interest to other financial institutions for lending them money, and at the same time they are increasing the interest they charge their mortgage customers.

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