The Euribor continues its free fall and people with a variable rate mortgage continue to be lucky. Benchmark Variable Mortgage Index Falls Again in October, its eighth consecutive monthand closes the month at an average value of 2.691%, the lowest figure since November 2022.
With compared to last month, which closed with an average of 2.9%Euribo falls by 0.245 percentage points. This value is up to 1,469 points lower than that recorded just a year ago, in October 2023: 4.160%.
In this way, people who have taken out a variable rate mortgage loan and who have to do an annual review with this month’s data will see how their payment is reduced between 120 and 240 euros on averagethe biggest drop since December 2009, according to analysis by mortgage comparison site iAhorro. For his part, the one who must do the half-yearly review you will notice a slight reduction, between 80 and 160 euros, they calculate.
One year since the highest peak of Euribor
The current situation contrasts sharply with what happened just a year ago, when Euribor recorded its last peak, the highest figure since November 2009, the comparator also points out. “The best time of the year to apply for a mortgage has arrived,” says Simone Colombelli, director of mortgages at iAhorro, who adds that “the Euribor “it could end the year around 2.3 or 2.2%”. Other experts place the end of the year around 2.5% or 3% at the end of 2024.
The Euribor the year has started with a rate of 3.609%, while in February it stood at 3.671%; and in March, at 3.718%. In April started a downward trajectory which is maintained. That month it closed at 3,703%; in May, at 3,680%; in June, at 3,650%; in July, at 3.526%; in August, at 3.166%; and in September, at 2,936%.
The indicator falls hard after the European Central Bank (ECB) reduced the On October 17, interest rates reached 25 points the basics. It was the second time that the organization has chosen lower the price of silver consecutively, and the third time this year. In this context, analysts expect the indicator to continue its downward trend, while warning that this will depend on the pace of interest rate cuts undertaken by the ECB, the growth prospects of the euro zone but also the evolution of inflation.
Just this week, ECB President Christine Lagarde was pleased with the fall in prices that the euro zone has experienced, but called for caution when it comes to reducing interest rates. The ECB, he said, does not have a “systematic, linear sequence, which would be the way forward.”
“We rely on the data, we look at everything that is available and we analyze that data based on three key criteria, including inflation outlook, underlying inflation and monetary policy transmission,” he declared. The organization, he assured, must be careful.
