Today's Euribor data registers a sharp rise after the decision this Thursday of the European Central Bank (ECB) to raise interest rates and its announcement of "significant increases" in 2023 accompanied by an intensification in the liquidity withdrawal policy .
The daily Euribor has stood today at 2.993%, very close to 3%, after experiencing a strong rise in just one day, of more than one tenth. This Thursday it was at 2.867%. It is a sign of the rapid effects of monetary policy on the housing market. In monthly terms, the Euribor average stands at around 2.8%.
The reference indicator for mortgages began the year at -0.47% and it was not until April that it entered positive territory. Since then, it has not stopped rising, first amid inflationary tensions accelerated by the invasion of Ukraine and, since July, by the ECB's first interest rate hikes in eleven years.
The Euribor was above 2.5% in October and the forecast, after the new increases, is that it will continue to rise. The current level is the highest since the end of 2008. That year it exceeded 5%, at which time it began to fall sharply with the onset of the financial crisis.
Apart from raising rates by 0.5 points, to 2.5%, a percentage also unprecedented since 2008, the ECB also announced yesterday that it will reduce the balance from next year by 15,000 million euros to gradually reduce liquidity and take steps towards its goal of placing inflation at 2%.
For variable rate mortgages, these increases in Euribor have direct effects. If today's daily data is taken and a differential of 1% is applied, the installment of a 25-year mortgage of 150,000 euros would be 791 euros. At the beginning of the year it stood at 533 euros, according to the AHE comparison tool.
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However, the difficulties will increase in the coming years. Fotocasa calculates that variable mortgages will increase between 1,900 and 4,700 euros a year compared to six months ago. The tightening of the monetary policy will mean a monthly increase of between 160 and 390 euros per month in loan installments, 32% more.
