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.