Spain is experiencing a delicate economic situation due to the increase in the cost of daily living, to which must be added a real estate market whose prices are skyrocketing. This creates big problems for hundreds of thousands of families in our country who have seen prices increase by a greater proportion than their wages. At least in recent weeks there has been good news about the European Central Bank cutting interest rates and lowering Euribor, which could be good news for the millions of people who have loans mortgages.
He European Central Bank It had already warned of a period of prosperity last June, announcing the first cut in interest rates in the euro zone since March 2016. The ECB’s cut was 0.25 points, from 4.5 to 4.25%, the first reduction after 10 consecutive increases. Added to this is a falling Euribor after closing the month of August at 3.166%, reaching its lowest level since last September.
This Euribor at 12 months down, this will mean a small reduction for people with variable rate mortgages, whose terms could improve when they review. This will depend on many factors such as the amount of the loan, the amount amortized and the differential applied between the interest rate and the Euribor. The reduction could be around 80 euros per month, which is not the case. little sin given the delicate situation many families are experiencing.
In recent weeks, the United States Federal Reserve also announced a half-point interest rate cut and, in line with the European Central Bankalso planned another similar reduction before the end of 2024. “The September meeting was widely seen as a good time to reassess the level of monetary policy tightening,” he said. Olli RehnCommissioner for Economic and Monetary Affairs of the ECB, specifying that there are good expectations for the end of the year.
An expert’s opinion on real estate loans
Gonzalo Bernardosprofessor of economics at the University of Barcelona, gave his opinion on the economic situation in Spain and the impact that the news from the United States could have on the pockets of millions of Spaniards. “The cycle has changed and what we need to do is reduce it,” he said in The sixth on the period that awaits us in the months to come.
Regarding the impact of these interest rate cuts on mortgages, he clarified that: “They are driven by Euribor, and this is driven to a large extent by expectations of interest rate cuts from the part of the ECB. “What the United States is doing now with a new monetary cycle will hardly affect Europe.”
Gonzalo Bernardos He also said those with fixed-rate mortgages could also receive good news in the coming months, as “banks will find financing outside Europe at a lower interest rate.” The economist called it a “real godsend” that fixed-rate mortgages can be set at 2%.
Regarding the economic situation in Europe and in Spain in general, I emphasize that: “The inflation generated mainly by the rise in raw materials and, in part, by the war between Ukraine and Russia, has disappeared.” “Those times of misery, when we were going worse and worse, when we had an economy based on low cost and that it was very difficult to find work can be considered concluded,” he said on the show warm redled by Antonio Garcia Ferreras.
“If we grow at 2.7% or 2.8% in an unfavorable economic environment, what can we do next year, when construction investments will increase significantly, companies will increase their investments and with an environment in Europe much better than the one we currently have? ” he said about Spain’s situation in the short term, once the crisis caused by the war in Ukraine ends.
Even if the economic data speak of a period of prosperity, the truth is that the high daily costs are a sword of Damocles for many Spaniards who have not seen all these good figures published every other day also reflected in a salary increase. .
