The Euribor drops to 3.68% in May and continues to give a break to mortgage holders

May 31. () –

The Euribor has closed the month of May at 3.68%, in the absence of the Bank of Spain confirming this figure. Although the reference rate is still high compared to recent historical experience, it will be a relief for mortgage holders, who will see their mortgage payment reduced.

The Euribor closed January at 3.609%, while in February it reached 3.671%, in March it closed at 3.718% and was 3.703% in April. Therefore, the data for the fifth month of the year represents the second reduction in this rate so far this year.

Given that in May of last year the Euribor was at 3.862%, mortgage holders will see their mortgage payment go down this year if they have to review the interest on their loan with the Euribor for the month of May.

This will mean that a person who has contracted a variable mortgage of 150,000 euros for 30 years and with a differential of 0.99% plus Euribor and must review their interest rate with the May Euribor will register a slight decrease in their interest rate. 16.5 euros per month. This is equivalent to about 200 euros per year.

This calculation, carried out by Europa Press, implies the maximum level of decline for a person who has contracted a mortgage with that financed level, since since it is a review at the beginning of the loan (that is, there are 30 years left to amortize), The change in the interest rate has much more impact as there is a lot of principal to be amortized.

The reason that explains the decrease in the Euribor, according to HelpMyCash analyst Miquel Riera, is the foreseeable rate reduction that the European Central Bank will announce on June 6.

Now, for the analyst, “it remains to be seen if the Euribor will be affected by the ECB’s rate cut,” taking into account the uncertainty that the eurozone economy is going through due to the conflicts in Ukraine and Israel. “These geopolitical tensions may lead eurozone countries to increase their public spending on defense and the arms industry, which may cause a rise in inflation,” Riera indicated.

“Although at the moment these reductions are still small, what is important is the change in trend of the indicator, which we attribute to the fact that the markets assume that the ECB will kick off its flexibility cycle at its meeting on the 6th. June, that is, within a week,” adds Itsaso Apezteguia, Ebury analyst.

“The drop that we see now in the Euribor is positive for everyone, but it hardly changes the economic and mortgage panorama, which has been in a moment of stabilization and maintenance for months,” explains the Mortgage Director of the iAhorro comparator, Simone Colombelli. The expert has warned that the reference rate is above the levels expected at the beginning of the year for this time.