The 12-month Euribor closed the month of July with an average monthly rate of 4.149%.This means continuing to rise above the 4% barrier, which was surpassed last month and is the highest level for this reference rate since 2008, pending confirmation of these data by the Bank of Spain, the index continues to lag behind the eurozone benchmark rate of 4.25%. This level represents an increase of 14.2 basis points compared to June, when this index – which is used as a reference rate for most variable mortgages – stood at 4.007%.In addition, it has increased by 3.157 points compared to July 2022 and is still at the highest level since November 2008, when it closed at 4.350%.This means that a person who has taken out a 30-year variable mortgage of 150,000 euros with a spread of 0.99% plus Euribor and must review his interest rate in July will see an increase in his mortgage payment of around 265 euros per month. In absolute terms, you would go from paying around 553 euros to around 818 euros per month.This increase in the mortgage payment would mean an additional outlay for families of 3,179 euros per year.However, the increase in repayments depends on the particular conditions of each mortgage, in addition to the outstanding capital and the repayment term. The average outstanding balance of mortgages tends to have shorter terms and capital, so the mortgage increase for families should be lower on average. Variable mortgages have been under stress for a long year due to an unusual rise due to the sharpness and, above all, the short time in which it has manifested itself”, explained the association of financial users, Asufin.”The updated forecasts that we handle indicate that August will be the month in which the containment referred to by the European Central Bank (ECB) is manifested in a first drop in the indicator,” continued Asufin, from that moment on, the association considers that the tone will be the stagnation of the Euribor at levels of 4%, with a downward trend until the end of the year. “We must not forget exogenous factors such as the slowdown of such powerful economies in the Eurozone as the German, Dutch or Italian”, clarifies Asufin, which calls on banks to put relief measures to ensure that mortgagors can afford their installments.
