New rate hike The European Central Bank (ECB) has carri out a new increase in interest rates. By basis points, reaching , thus reaching the highest levels since The president of the ECB, Christine Lagarde. Has mention that there is a possibility that there will not be another rate hike at the next meeting , which will take place in September. However, she stat that the Governing Council will make its final decision depending on the data. The latest inflation data continues to be high, it is year-on-year in June. However, the ECB indicates that they must observe in detail what the data says. How does it affect mortgage holders? The reality is that the situation for mortgage holders is complicat. Firstly, the Euribor will be above , since the month of June left it at , these are maximums since November when it clos at . This scenario complicates access to a mortgage for consumers with low purchasing power.
When will there be a rate cut?
A large number of economists and analysts in the country believe that June may be a valid date for the first rate cut due to weaker inflation forecasts and growth prospects. The Euribor situation: above The rise in interest rates and future South Africa Phone Number Data measures that the ECB could carry out to fight inflation will prevent the Euribor from giving mortgage holders a break during the coming months. The reality is that, instead of starting to go down, the market believes that it will remain stable at current levels and may even rise a little more. In June the Euribor stood at . The average for the -month Euribor so far in July is and forecasts indicate that it will remain around that level both in this year and in the next. In fact, Funcas places the annual average for at and in On the other hand, BBVA Research even considers that it could reach in the following months.
Who is most affected by the rise in the Euribor?
The rate increases that have already been announc by the. ECB and those to come will have negative impacts, mainly, for those consumers with lower incomes . The reality is that obtaining a mortgage loan will be more complicat for them. The rise in the Singapore Phone Number List Euribor already affects. The number of mortgages grant , people with low incomes do not have the possibility of meeting the new mortgage payments. This means that the most vulnerable families with variable mortgages have greater difficulties when paying the installment. Which increases the risk of default. According to data from the General Council of Notaries in May, only of home sales in the country were carri out through a mortgage. On the other hand, banking entities are increasingly strict when granting financing. In this way, they seek to avoid an increase in delinquencies . All of this directly affects low-income consumers, who are more at risk of over-indebtedness. The relationship between the amount of the loans and the value of the homes (LTV) has been at a minimum since December.
