The euribor rises to -0.179% but still lowers mortgages

Published on August 2nd 2018

The euribor closes June at -0.181%

The final data for July will make it possible to lower the average mortgage to which it will be revised at 15.24 euros per year. In a daily rate, the index to which most of the Spanish mortgages are referenced, the Euribor was placed this Tuesday, the last day of the month, at -0.178%, one tenth below the percentage that marks the monthly average, although still above the record of the same month of the previous year, which was -0.154%.

With these values, mortgages of 120,000 euros to 20 years with a differential of euribor + 1% to which they review will experience a reduction of about 15.24 euros in their annual quota or, which is the same, of 1, 27 euros per month. The Euribor entered in February 2016 in negative territory for the first time in history before the ultraexpansive policy of the European Central Bank (ECB) to prop up the recovery in the euro zone, so it has already accumulated two years below 0% .

XTB analyst Rodrigo García believes that, despite these negative levels, it seems that the interbank index of the euro zone continues with its process of anticipating a change in the trend. "After an uninterrupted fall that has lasted more than five years, the euribor rises for the fifth consecutive month," he stressed, adding that since the lows of last February the indicator has only increased, although always in negative terms .

The expert explained that although this is positive for banks, it is not for mortgages, both for those who will see how their mortgages are revised in this period and for those who want to imminently hire a product referenced to the Euribor , be it a mortgage or not. However, Garcia has assured that the impact "is very residual", since it has only gone from -0.191% to -0.179%. "What is important about this is not the amount, but the fact that we have been upwards for five consecutive months," he said.

In the opinion of the analyst of XTB, the factors that are influencing this rebound are the "slight" increase in the demand for credit and, above all, the open door left by the European Central Bank ECB) to direct the euro zone towards a potential monetary normalization.

"From now on, the ECB will once again be a key element, the closer a rate rise is, the more upward movement this indicator will make, anticipating the decision", he pointed out. In this line, Garcia explained that the market is aware that the president of the issuing institute, Mario Draghi, may be living his last months at the head of the ECB and that, therefore, there are certain possibilities, although "very few", of to say goodbye with a rate increase or, at least, a more 'hawkish' message.

Source: Expansión

  • Barcelona

    93 293 19 07

    Paseo de Gracia 85, 2ª planta

  • Madrid

    91 800 54 66

    Serrano 43-45, 4ª planta

  • Valencia

    96 128 59 68

    Calle Mossen Femades 3, bajo dcha. Ed. Lauria

  • Palma

    97 100 32 03

    Calle Unió 9

We use our own and third-party cookies to make our website work safely and personalize its content. Likewise, we use cookies to measure and obtain data on your navigation and to adjust advertising to your tastes and preferences. Press the "Accept all" button to confirm that you have read and accepted the information presented. To manage or disable these cookies, click on "Configuration". For more information see our cookies policy.
Modify cookies
Technical and functional Always active
This website uses its own Cookies to collect information in order to improve our services. If you continue browsing, you accept their installation. The user has the possibility of configuring his browser, being able, if he so wishes, to prevent them from being installed on his hard drive, although he must bear in mind that such action may cause difficulties in navigating the website.
Analytics and personalization
They allow the monitoring and analysis of the behavior of the users of this website. The information collected through this type of cookies is used to measure the activity of the web for the elaboration of user navigation profiles in order to introduce improvements based on the analysis of the usage data made by the users of the service. They allow us to save the user's preference information to improve the quality of our services and to offer a better experience through recommended products.
Marketing and advertising
These cookies are used to store information about the preferences and personal choices of the user through the continuous observation of their browsing habits. Thanks to them, we can know the browsing habits on the website and display advertising related to the user's browsing profile.