How long will the Euribor keep falling?

Published on November 2nd 2017

The euribor will free some mortgaged to pay interest to close October

The one-year Euribor, the most commonly used indicator in Spain to calculate the mortgage share, will free some mortgages to pay interest at the end of October with a new decline that will bring it down to -0.180%, below the differential. applied by some entities. When the Bank of Spain confirms this figure in the coming days, it will mean that for the first time this indicator sinks enough to cancel the lower differential to which a mortgage in Spain was sold, 0.17 points.

It was Deutsche Bank, which during the years prior to the crisis commercialized a mortgage loan with a spread of 0.17% and, although in theory, this closing of the Euribor would cause negative interest from the entity ensure that the customer simply will not have to pay interest .

What is certain is that the euribor will remain at extraordinarily low levels for a long period of time. Gustavo Martínez, analyst at XTB, explains that "the reason why it continues to fall is still the same reason why it has been decreasing all this time." The massive purchases of debt by the ECB (famous QE) produce an increase in the offer monetary and in turn a decrease in the interest rate of money.When this offer becomes over-supply then the rates can be so low that they become negative and keep falling while the measures continue.



  • Barcelona

    93 293 19 07

    Paseo de Gracia 85, 8ª planta

  • Madrid

    91 800 54 66

    Serrano 60, 4ª planta

  • Sant Cugat del Vallès

    93 293 19 07

    Plaza Ausiàs March 1, 4ª planta

  • Valencia

    96 128 59 68

    Calle Mossen Femades 3, bajo dcha. Ed. Lauria

  • Palma de Mallorca

    97 100 32 03

  • Alicante

    96 564 11 13

  • Málaga

    95 156 38 58

  • Sevilla

    95 525 24 41