What is the Euribor? The Euribor is the reference index most used in Spain to link variable mortgages. This is the interest does the fall rate at which banks lend money to each other, in the short term. It is for this reason that it fluctuates, rising or falling constantly. This constant fluctuation of the Euribor is the reason why the monthly mortgage payment varies. It is reviewed every six or twelve months , this will vary depending on what you have agreed with your bank. August Euribor After months of increases, we can see that the Euribor has taken a break. The closing of the Euribor in August shows a provisional average of . This is percentage points below the in July. This reference index stood at at the beginning of the month, and during the first ten days it reached a minimum of . However, it also had rally days, and on August it reached a monthly high of . Finally, in the last days of the month it managed to relax a little, and in this way, it has left us with that average of .
How does it affect the variable mortgage payment?
What many are wondering is whether the recent decrease in the Euribor, although it was very slight, will cause the payments on your variable mortgage to be reduced. The reality is that it is not possible to affirm Malaysia WhatsApp Number Data that the financial burden of a variable rate mortgage will decrease soon. This is mainly due to the fact that the current interest rate is significantly higher if we compare it to that of a year ago. In other words, those who have a variable rate mortgage whose review takes place in September will have to face a significant increase in their monthly payment. On the other hand, it cannot be assured that the Euribor has already reached its maximum value and that it will begin its imminent decline, since it is likely that it will rise again.
The European Central Bank plan
It is necessary to keep in mind that there is a broader panorama that goes beyond the Euribor itself. The European Central Bank (ECB) raised rates with the aim of cooling the economy due to uncontrolled inflation in Europe. The reason is the search for a balance between cooling the economy and avoiding a possible recession. In this process of trying to Italy Phone Number List confront inflation. The highest financial authority of the eurozone acted very quickly. How did it do it? He chose to increase rates nine consecutive times , without a doubt, this is something unprecedented. However, the reality is that this increase in interest rates did not immediately impact the economy. Furthermore, the ECB continues to find it very difficult. To determine when the desired effect will be achieved. Although, so far this year of increases it was quite easy to go ahead and predict that Christine Lagarde and her team would choose. To maintain their interest rate hike policy, today, predict if they will. Also carry it out in September, October or December is no longer so simple.
