Euribor Rise: Mortgage Holders in Spain Feeling the Squeeze, But Some Relief is on the Way
Mortgage holders in Spain will see a slight increase in their fees as the 12-month Euribor, the most widely used indicator to calculate variable mortgages, closes March at an average rate of 3.72%. However, those who review their loans semi-annually will see some relief.
From February to March, the Euribor rose from 3.671% to 3.72%, indicating that mortgage holders who review their loans annually will face a higher fee. A year ago, the average Euribor rate was 3.647%, so those who review their loans annually will see an increase in their fees.
Despite this rise, analysts expect the Euribor to remain stable or trend slightly downward until June when the European Central Bank is expected to reduce interest rates. Those who review semi-annually will benefit from this decision as they will see a slight reduction in their fees.
The trajectory of the Euribor is uncertain due to several factors such as economic slowdowns, inflation, and geopolitical conflicts. While experts predict a slight decrease in the Euribor in the second half of the year, significant drops are possible in the long term.
In conclusion, mortgage holders should stay informed about market trends and central bank decisions to make informed decisions regarding their loans. They should consider reviewing their loans semi-annually to take advantage of any relief offered by changes in interest rates and other economic factors.