mortgage prices have dropped sharply
Euribor price fell sharply mortgage prices after returning to the descent down the slope. Having started the week with slight growth, on Tuesday, October 29, it fell to 2.57%. With two days left until the end of the month, mortgage discounts could in some cases exceed €2,600 per year. The rate cut by the European Central Bank and the downward movement of the rate that most mortgages are approaching in Spain They could make October a record month for installment discounts. The average monthly price remains at 2.705% and will buy 4.16% from last year. And the joy of lower mortgage payments may continue because experts say… Euribor will continue to decline.
Euribor today
He Euribor today a drop to 2.57% was recorded. The October average is 2.705% (yearly low).
This will help you save on your mortgage in October.
If in September some mortgage holders have already saved 2,400 euros per month, then in this case the mortgage reduction will be 2,600 euros if we calculate using average monthly Euribor rate as of October 18 (2.753%). According to calculations by mortgage comparator iAhorro, for a 30-year variable mortgage with Euribor plus a differential of 0.99%, the monthly payment if the mortgaged property is €300,000 will decrease by annual review from this year 2024, 223 euros per month, which is 2684 euros less per year. If the amount of money remaining in the mortgage is €150,000 and all other things being equal, the figures are reduced to €111 less each time and €1,342 less per year.
You’ll pay less if you renew your mortgage in December
According to experts, Euribor will continue to fall and can reach December at 2.5% The savings for those who extend this mortgage into the last month of the year will remain at €2,300 in the first case and €1,199 in the second case of a €150,000 mortgage. This figure is lower, although the difference cited by most mortgages in Spain is lower because October this month is the month that mortgage holders suffered the most a year ago, when they faced an extension with the highest Euribor rate. Now there will be more relief.
Experts predict that Euribor will continue to fall
We’ll have to wait to see how it arrives. Euribor at the end of the year. There’s a lot on his way mortgaged that their quotas will be reduced in annual renewal. This year 2024 has begun a path of decline and although it is still far from solving the economy of families who recently had to face a monthly increase of up to 600 euros, it is gradually weakening saving.
In this spirit, Sergio Carbajal, responsible for mortgage lending in Trackerpoints out that Euribor fell for 13 months, but previously it rose for 22 months, and “always after a noticeable increase there is a movement of correction and adjustment, which is where Euribor is now.”
For his part, Enrique Diaz-Alvarez, Chief Risk Officer Eburyexplains that Euribor continues to fall sharplyas markets expect more cuts from the European Central Bank (ECB). “Eurozone inflation data for September fell below 2% for the first time since the beginning of 2021. Although the core index – the more significant one – stands at 2.7%, the disinflationary trend is “undeniable and will provide cover.” for further monetary easing.”