In June, everything changes again in mortgages: this is confirmed by the ECB

There’s great news if you have it. mortgage (or if you want to have one). This month, people with adjustable rate mortgages will get a small but welcome break.

Recently European Central Bank confirmed that Euribor, the index to which most variable mortgages in Spain are linked, reversed its trend of sharp growth for the second month in a row, is 3.67%.

This change marks a significant reversal in a trend that began in July 2022 and it has not stopped growing until today.

What does this Euribor rate reduction mean?

For those with adjustable rate mortgages, this Euribor reduction means a reduction in the premiums they pay each month. After nearly two years of growth, the decline brings relief to millions of families. The decline in Euribor reflects a clear change money-credit policy ECBwhich decided to maintain a much more flexible position due to lower inflation in the eurozone.

This is the economic context and the decisions of the ECB.

He ECB took these measures in response to various economic factors. Eurozone inflation has shown clear signs of slowing, finally allowing ECB gradually reduce interest rates.

However ECB has made it clear that its policy will remain restrictive until next year, in 2025to ensure that inflation remains under control in the long term.

What effect does this have on the Spanish?

For many families, this change occurs in critical moment. Prior to this, the hikes had pushed up monthly mortgage payments, adding financial pressure to millions of households.

With the new Euribor rate reduction, contributions are expected to fall even further, providing much-needed relief and improving citizens’ saving capacity. For example, the average mortgage is 150,000 euros over 25 years you could see a pretty generous monthly cut. Something that will help the family make ends meet more comfortably.

What can we expect in the future?

Although the current trend is positive, it is important that mortgage holders are aware of possible changes that may occur in the future. Actually, ECB Maybe regulate their policies depending on global economic evolution and inflation.

However, current forecasts suggest that we may be entering good era, as for the descents. Another benefit of the Euribor rate cut is that now is a good time for mortgage holders to consider refinancing their loans. Financial institutions, in response to the ECB’s policy, are offering more favorable conditions for mortgage refinancing. So, if this is your case, don’t be afraid to contact your bank.

Some tips if you have a mortgage

For those with an adjustable rate mortgage, it is very important to keep up to date with bank announcements and ECB updates. In addition to regularly analyzing the evolution of Euribor and considering some refinancing options. All of this could be the key to making the most of the current downward trend.

In conclusion, it is advisable to consult with financial advisors to better understand your options and make decisions that will truly help you.

June brings good news. Good news for those with a variable rate mortgage. The ECB has confirmed a reduction in the Euribor rate, which will allow many families to reduce their monthly expenses by mortgage and improve your life. This respite comes at a key time, providing opportunities to better plan for your financial future.