The Bank of Spain ratified this Friday that the Euribor, the benchmark index for mortgage loans, rose to 0.852% in June and stood at its highest since August 2012.
As indicated by the Bank of Spain in its statement, the one-year Euribor index, which is used as the main reference to set the interest rate on mortgage loans granted by Spanish credit institutions, rose in June from 0.287% in the month up to 0.852%, which is 0.565 points more. With this rise, the Euribor chained six months on the rise, reports Servimedia.
Taking the last 12 months as a reference, the index registers a rise of 1,336 points. In the month of February 2021, the Euribor registered its historical low at -0.505% and since then it has risen by 1.357 points. The Euribor had been in negative territory since February 2016.
These official reference interest rates are valid from their publication in the Official State Gazette (BOE), which, as a general rule, occurs a couple of days after their publication by the banking authority.
The Euribor is calculated using data from the main banks in the euro zone and consists of the average spot interest rate offered by entities for one-year term deposit operations in euros.
The indicator has been boosted by the announcement that the European Central Bank (ECB) will raise interest rates from 0% to 0.25% in July, while a new rise will take place in September that could raise rates to figures close to 0.75%.
The experts, who a few weeks ago did not expect the Euribor to reach 1% until the end of this year, are already updating their forecasts.
Thus, the Bankinter Analysis Department predicts that the 12-month Euribor will reach 1.9% in 2022 and 2.20% in 2023, later moderating to 2% in 2024. For its part, Asufin believes that its value will be 1.50% in December 2022 and 1.9% in 2023, reports Europa Press.
In short, the Euribor has come out of its lethargy and has introduced a new source of concern in the mortgage market. Buyers will have to pay up to 53,000 euros more if they wait a year to take out a home loan or, in other words, that buying a home today would mean a quantitative saving compared to doing so in 2023.
In this situation, the most affected will be the holders of variable mortgages and that they will have to review the conditions at the end of this month, since they will suffer an increase in their monthly payment.
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