The Euribor continues to grow and reaches the 3.5% barrier, its highest since 20

emonseo21

We already announced it last September: variable mortgages would skyrocket if the Euribor continued to rise . And at the moment, there is no brake in sight. The reference indicator for the vast majority of variable rate mortgages in Spain, the -month Euribor , continues to skyrocket and has exceeded the daily rate of % . We would have to go back to December , , in the midst of the economic crisis, to find similar figures.

This record figure occurs just after the European Central Bank (ECB) , through some of its members, declared the need to vary this amount in order to face the economic recession and the enormous inflation that is devastating the entire continent. . Thus, at the meeting held on February they decided to raise interest rates to % , sending a clear message to stop the escalation of prices and ensure that inflation remains at % .


In the last two sessions it has positioned itself even above the barrier, increasing by thousandths and reaching % on February It is curious but the provisional average for February is % compared to the % with which the month of January closed. Just a year ago, when the pandemic crisis was emerging, the Euribor was still positioned in negative figures, around -%.

How does it directly affect users?
With these new Euribor figures in hand, facing the installments of a variable-rate mortgage becomes a truly complex challenge. And if we request a loan of , euros for years, with a differential of % over t  Cyprus Email List  he Euribor , the fee will go from euros to euros, which translates into an increase of euros per month and , euros year.



The forecasts
The governor of the Bank of Latvia and member of the Governing Council of the ECB, Martins Kazaks , as well as the vice president of the monetary authority, Luis de Guindos , have assured that price increases will not stop in March, where another increase in prices is expected. basis points up to % . In this context, Brussels is optimistic, since the reduction in energy prices and the good performance of the European labor market are added to the good GDP forecasts in the euro zone for . Thus, although inflation is expected to continue rising, it is expected to do so up to % , instead of the % that was initially estimated.

In this context, experts assure that interest rates may continue to rise , although this will not go hand in hand with a collapse in economic growth. On this occasion, the ECB seems that it will not bow down to the pressures of the governments of the euro zone countries, since they consider that this is the only formula to put an end to high inflation.

The governor of the Central Bank of Holland and head of monetary policy at the ECB, Klaas Knot , assures that new interest rate increases of basis points will be undertaken in the following meetings scheduled for both March and May , reaching %.

But everything must go down, and it is expected that at the end of this year the Euribor will hit its ceiling so that from it will begin to move in the range of % . However, we will have to wait to see how the indicator behaves during the spring, a time in which important changes are expected, and which will set the pace of evolution for the rest of the year.

What analysts think
The Spanish virtual platform Hipoo assures that the Euribor will move between % and % during the first quarter of , offering a scenario that is not at all attractive for new mortgage holders, who will consequently choose to immerse themselves in a mortgage of fixed rate, since fixed rates are usually very similar to Euribor values. Likewise, they point out that financial entities will continue to offer competitive variable rates .

An analyst at _ _ _ _ It will continue to rise until it exceeds the % limit.

And now that?
Almost all the experts consulted agree on the idea that the ECB will implement a more aggressive policy , starting in March, once it reviews the behavior of new mortgage loans. However, there is also a real possibility that the Euribor will begin to slow down, although it is less likely if one takes into account that inflation in the Eurozone stood at % during the month of January .