What is the Euribor rate today, February 7, 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 Wednesday it fell by 11 thousandths compared to the percentage reached on Tuesday.

The index continues to decline from its 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%. The average for January was 3.609%, causing Euribor to fall for the third month in a row.

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 drop yet, as it was 3.337% in January 2023, although that’s expected in the coming months.

How much will Euribor rise today?

The Euribor rate drops to 3.656% today, down from 3.667% on Tuesday. On Wednesday, January 24, it hit a yearly high of 3.676%, and on Tuesday it hit its second-highest value of the year. The average for February is currently 3.60%.

The European Central Bank (ECB) decided in January to leave the eurozone’s benchmark interest rates unchanged for the third time. from October. The reverse would be a surprise: investors and analysts gave it Certainly and they were more aware that the institution could provide new clues about the expected start recession cycle types. However, its president Christine Lagardeconscientiously avoided shedding too much light on this issue.

“All I can say is that consensus this morning at the governing council table was that it was premature to discuss rate reduction,” he said.

What will happen in 2024 with Euribor

curbing inflation in the eurozone is easing pressure on the European Central Bank (ECB) to continue raising interest rates this year. The US Federal Reserve has already said it will cut the cost of money by three times this year and is therefore pushing the ECB to follow the same path. Market estimates suggest the body, led by France’s Christine Lagarde, could leave rates at current levels until the summer and then cut them as inflation continues to fall and economic growth slows.

Inflation rate The annual rate rose by five-tenths in December in the eurozone, to 2.9%, according to a preliminary estimate published this Friday by statistics service Eurostat.

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For people on an annual review, they will start to see their fees drop 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 set 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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