The 12-month Euribor, the widely used indicator in Spain to calculate variable mortgages, is set to close March with a rise again, hovering around 3.72%. This means that mortgage holders who review their credit annually will see an increase in fees, while those who review their credit semi-annually will see some relief.
As of March, the average 12-month Euribor rate stood at 3.72%, up from 3.671% in February. A year ago, Euribor averaged 3.647 percent. This indicates that those who review their mortgage annually will see an increase in fees compared to last year. However, for those who check every six months, there will be some relief.
The rise in Euribor in March is expected to lead to an increase in fees for mortgagors who revise their loans on an annual level. On the other hand, those who revise semi-annually will see a slight decrease. Analysts believe that the Euribor is likely to remain stable or decline slightly until June when the European Central Bank is expected to cut interest rates.
While experts predict a slight decline in the Euribor in the second half of the year, uncertainties such as economic slowdown, inflation and geopolitical conflicts could affect its trajectory. Overall, Euribor is expected to fluctuate around 3.7% in the short term with the possibility of a significant decline in the longer term.
In conclusion, mortgage holders need to be informed about market trends and central bank decisions regarding interest rates so that they can make informed decisions regarding their loans