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The annual Euribor rate, the most used indicator in Spain for calculating floating rate mortgages, is preparing to give another joy to those whose mortgage falls under this indicatorThe index is on track to end July with a fourth straight monthly decline after hitting yearly lows last week.

This means that just three days before the end of the month the indicator shows on average for the month 3.54%, which is lower than 3.65% in June.; but about all a far cry from 4.149% in July last yearwhich implies a reduction in fees for those who review this month’s figure. Moreover, this is not an isolated reduction: Euribor has already accumulated a reduction for four months in a row, which consolidates cheaper mortgages this year. It also promises more affordable fees for those who review their mortgage every six months. since six months ago the Euribor rate was 3.609%.

Euribor rate hits lowest in a year

Euribor’s daily readings broke the 3.5% level last Thursday, rising from 3.528% to 3.481%. and on Friday it fell to 3.426%, its lowest since March 2023.Last week, Euribor hit a yearly low (3.502%), but it recovered on Monday and Wednesday, although it managed to fall in the process.

Euribor started the year at 3.609% (January average), rising to 3.671% in February and 3.718% in March.

From there it began to move lower, helped by expectations of interest rate cuts by the European Central Bank (ECB), which were completed in June. with a 25 basis point decline and expected to deepen in September.

In this context, Euribor fell to 3.703% in April, was 3.68% in May and 3.65% in June.

Euribor and a fall of more than 600 euros

Savings could exceed €600 per year for those subject to annual review (for a typical €150,000 mortgage over 25 years and with an interest rate of Euribor plus 1%), although the reduction will be less significant for those who have the option to review their mortgage every six months.

“Given the changes that took place last July, which was one of the highest months for Euribor, for every €100,000 mortgage, mortgage holders will save €50 per month,” explains Ricardo Gulias, CEO of RN Your Mortgage Solution.