Mortgage forecast after Euribor collapse

He Euribor gave nice surprise in September, fall until 2.946%. For those who have mortgage To variable interestThis news could not have come at a better time. After a boom that brought many to the brink of financial ruin, second biggest drop this yeargoing down 0.22 points percent compared to August. And, although the descent is not the sharpest ever seen, it quite important as for families start noticing relief in their pockets.

Here’s how a fall in the Euribor rate will affect your mortgage

If we look back September from 2023Euribor rate fell sharply 120 basis points. To find a drop like this, you’ll have to go back to January 2013. Those days when it seemed like everyone was rushing to refinance are a little closer to returning, or so it seems.

For those who going to review your annual mortgage and they will have to update it in October, the fall will cause saving 104.66 euros per month. That is, no more, no less 1255 euros less per yearwhat does it mean decrease by 11.4%. Surely many of you are already calculating where you can invest that extra money that has so far flown straight into the bank.

But it’s not just those who renegotiate their mortgage every year that are lucky. who has mid-year reviews will also see a decline. Although not as big as the annual one, a drop of 65 euros per month, or 394 euros each semesterremains a more than interesting figure. With inflation hitting everyone’s pockets, every euro matters.

Reasons for the fall of Euribor

What caused this fall? Basically the last one solutions central banks. He European Central Bank (ECB) And US Federal Reserve System (FRS) They seem to move in unison prevent destabilization of the euro-dollar balance. Both expressed concern about the state of the global economy, and this anxiety materialized in sales from interest rates. Chances are if they continue down this path we might see will fall even more by the end of the year.

Forecasts and how they affect mortgages

In the short term, all indications are that this downward trend will continue. Some experts predict that Euribor can be stabilized by below 3% in the coming months, and it’s not unreasonable to think that we might close 2024 with Euribor around 2.5%. Without a doubt it would be a mouthful fresh air for many families who have been tightening their belts for several months now.

Now, even if the trend is favorable, we must always be careful. markets are unstable and what today seems like a continuous decline may give Mr.I’ll go anytime. However at the moment the numbers are on the pledged side. So if you have Variable Mortgage May Make You Breathe Easier.

Euribor appears to have left its highest peaks behind and the coming months may bring more relief to those who depend on its evolution. So, at least for now, it’s time to enjoy the fall and take advantage of the savings that never hurt. Who knows? This may be the start of a streak of good news for the mortgage market. And if you’re lucky, that dreaded mortgage renegotiation will turn out to be less painful than you expected.