It falls more than three tenths in a single month and closes December at 3.679%
December 29, 2023 . Updated at 6.45pm
Los mortgaged They will close this 2023 with the first truce after more than a year and a half. After 21 months of practically continuous increases, the EURBOR —reference index for variable rate mortgages—is starting to confirm a downward trend. Headaches and endless calculations began to become a constant in Spanish families as early as April 2022, when this indicator closed the month in positive after more than four years in negative figures. And the fears are not over. With each rate increase decreed by the hawks of the European Central Bank (ECB), the indicator has stabilized in that upward spiral from which it now seems to be starting to emerge. So, in December, EURBOR surprises by breaking the 4% barrier reached six months ago and closed the last month of this year at 3.679%, the lowest monthly average value recorded since March (when it remained at 3.647%).
Another good news comes when the data is analyzed in intermonthly terms (one month compared to the previous one). Because compared to November (when the average rose to 4.022%), the the drop recorded by the EURBOR this December was more than three tenths, the highest drop in the last fourteen years: we have to go back to February 2009 (in the midst of the economic crisis) to find such a marked disaster.
But experts warn that the calm will not be as great as some expect: we must be cautious and not collapse too quickly because it is very likely that the EURBOR remains around 3% for many months before continuing its decline, explains the director of iAhorro Mortgages, Simone Colombelli. But he admits that what happened in the last few weeks was unexpected: this drastic drop in just one month took us all by surprise. We all expect, but not that much, but rather some downturn little by little, bringing the EURBOR to around 3.5 or 3.7%. According to the expert, this rate of decline cannot be maintained over time and it cannot yet be ruled out that there may be some increase, even if minimal.
Mortgages will notice
The reality is that, with this decline, there will already be those who will begin to do so note this lull in your mortgages. Above all, they will be those who will have to update their quotas next month. And the biggest surprise will be those who have to do it every six months, since they will see, after three upward revisions, that their monthly payments will decrease. between 30 and 60 euros depending on the amount of the mortgage.
Anyone who has taken out a variable loan of 150,000 euros for 30 years in December 2021, with a differential of 0.99% plus eurbor, So far it has only seen increases: the first of 86.25 euros, the second of 170.24 euros and the third of 84.36 euros per month. This means that, from the initial payment of a fee of 448 euros, you will have to pay a fee of 788.85 euros starting from June 2023. However, with the revision in December, this fee will drop to 761.53 euros, the which represents a reduction of almost 30 euros per month, illustrates iAhorro, who points out that in the case of a 300,000 euro mortgage, both the price increase and the decreases would double so much so that the reduction would now be more than 50 euros.
Only 2% of families renegotiated their mortgage despite the EURBOR rise
Those who will have to wait to see this decline will be those who have annual reviews. In this case, rates will continue to increase, albeit at a lower level than in the previous revision. In the same case as those who took out a variable mortgage in December 2021 for 30 years with a differential of 0.99% plus eurbor, but with an annual review, you will have seen how in these three years, with two upward reviews, your compensation has increased by over 300 euros. On the one hand, in the December 2022 revision, his compensation went from 448 euros per month to 707 and will now also rise to 761.53 euros, they explain.
Colombelli admits that, if everything continues in the right direction and In June 2024 the EURBOR is close to 3% The year could close around 2.7%: this would mean that, in the December 2024 revision, mortgage holders could see a reduction of around 80 euros.
Filed in: Euribor mortgages
2023-12-29 17:35:52
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