Mortgage holders in Spain will see an increase in their fees as the 12-month Euribor, the most widely used indicator to calculate variable mortgages, is set to close March at around 3.72%. This means that those who review their loan annually will see a slight increase in their fee, while those who review their loans semi-annually will experience some relief.
The average 12-month Euribor rate has risen to 3.72% in March after hovering at 3.671% in February. A year ago, the Euribor stood at an average of 3.647%, so mortgage holders who review their loans annually will be facing a higher fee compared to last year. However, for those who review their loans every six months, there will be some relief from this increase.
Analysts predict that the Euribor is likely to remain stable or trend slightly downward until June when the European Central Bank is expected to reduce interest rates. However, uncertainties such as economic slowdowns, inflation, and geopolitical conflicts could impact its trajectory and lead to fluctuations around 3.7% in the short term with the possibility of significant drops in the longer term.
Experts advise mortgage holders to stay informed about market trends and central bank decisions to make informed decisions regarding their loans. It’s important for them to keep track of changes in interest rates and other factors that could affect their monthly payments and overall financial stability.
In conclusion, the behavior of the 12-month Euribor is closely linked to global economic factors and central bank decisions, which can have a significant impact on mortgage holders’ finances. It’s crucial for them to stay informed about market trends and make informed decisions regarding their loans while keeping an eye on future developments that could affect their financial stability.