22 (EUROPE PRESS)
The 12-month Euribor has made a new jump and stood at 1.2% in its daily rate this Friday, after the European Central Bank (ECB) surprised with a higher-than-expected rise in interest rates.
The Governing Council of the ECB decided to raise interest rates by 50 basis points, so that the interest rate for its financing operations will be 0.50%, while the deposit rate will reach 0% and the loan facility, 0.75%.
The ECB thus agreed to an increase in the price of money greater than what it had advanced in recent weeks, when several members of the Executive Committee indicated that the rise would be 25 basis points.
Experts have warned that this rise in interest rates will have an impact on the Euribor, which will likely continue to rise and make variable-rate mortgages more expensive.
The advance of the Euribor has already been noticed only one day after the announcement of the ECB. This Friday, the indicator stood at 1.2% in its daily rate, compared to 1.142% that marked the previous day. This is the highest daily level since early July 2012.
The index thus chains six consecutive days above 1%, which allows us to anticipate that a monthly rise will be noted again and will exceed in July the monthly figure of 0.852% marked in June. With a week to go until the end of the month, the provisional average for July stands at 0.985%.
MORTGAGES CAN GET 1,400 EUROS MORE EXPENSIVE PER YEAR
The rise in the Euribor is making variable-rate mortgages more expensive. According to the estimates of the real estate portal piso.com, there will be an increase of approximately 1,400 euros on average per year per family, which will mean an increase in the monthly mortgage payment of between 115 and 120 euros.
“We are talking about an increase of more than 1.5 points in just 12 months, which will have a direct impact on those families who have a mortgage, especially a variable rate,” warns the Director of Studies for the real estate portal piso.com, Ferran Font.
Most experts agree that the indicator will close this year above 1.5% and will approach or exceed 2% in 2023, although from the financial product comparator HelpMyCash.com they see the Euribor as possibly reaching 2% in the next six months.
Although the rise in the Euribor does not affect fixed-rate mortgages, the comparator warns that those who wish to contract this type of product will have to accept higher prices than those offered by banks in recent months, above 2 .5% or 3%.
Add Comment