The Euribor has been falling for the fifth consecutive month and closes August at 3.166%

Aug. 30 () –

The Euribor, the reference rate to which most variable-rate mortgages in Spain are indexed, closed the month of August at 3.166%, marking its fifth consecutive month of decline.

The August figure is 36 basis points lower than the 3.526% recorded in July. It is also 90.7 basis points below the 4.073% recorded a year ago.

The interbank reference rate has thus reached its lowest value since December 2022, when the cycle of interest rate hikes by the European Central Bank was still halfway through.

This means that a person who has a variable mortgage of 150,000 euros over 30 years and with a differential of 0.99% plus Euribor and who must review their interest rate with the Euribor of August will see their monthly payment fall by 81.35 euros. This is equivalent to 976.1 euros per year.

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

“It should be noted that today’s daily rate has broken the 3.1% barrier – it has reached 3.088% – which anticipates that in September we will once again have a Euribor below that threshold, furthering the relief of those who have to review a mortgage that last year was moving at rates of 4%, commented the consumer association Asufin.

The bank’s forecasts indicate that the Euribor will close the year at around 2.8%, which would have an impact on the revised rates of around 50 euros.

For their part, experts from the fintech company Ebury have added that the most likely scenario is that the Euribor will continue to fall in the coming weeks due to an expected rate cut by the European Central Bank (ECB) at its meeting on 12 September.

“Like the market, we expect the central bank to cut another 25 basis points,” they said, before indicating that another cut is expected in December, which would leave rates at 3.75%.

However, they are not as optimistic as Asufin, as they expect uncertainty to also intervene and cause the Euribor to be “around 3-3.5% at the end of 2024”.