Euribor Up 2.5%, Reports Historic Mortgage Rise

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Financial expenditure has been steadily increasing since August. Everyday Up to 12 months, the interbank market link that marks the price Convertible mortgage, This Friday rose to 2.5%It has increased by 5.8 basis points since Thursday and the highest since mid-January 2009. The monthly average for September rose to 2.128% With which he will unveil at the end of the month Historical mortgage loan overview with Annual jump 2.61 pointsIt was trading in the -0.5% area since last year at this time.

In addition to raising the 1-year index, The 6-month rate rose to 1.8% today, and the three-month rate was 1.15%, close to the official rate of 1.25% set by the European Central Bank (ECB) on September 8. Remember those types Euribor turned positive in the second quarter After seven negative years. The 12-month crossed the zero mark on April 12, the 6-month – June 4, and the 3-month – higher on July 14.

Interbank indices move at a pace dictated by the central bank’s handbookAlthough sometimes, as now, they are allocated by discounting the risks associated with the expectation of future movements and the provision of credit. The energy crisis threatens to light the fuse of rising bank delinquencies As published by La Información last Wednesday, for the first time in more than a decade and put further pressure on the interbank market and the Euribor.

Since given by the ECB Changes in monetary policy In July, to be more active in the fight against inflation, financing conditions were tightened sharply. 12-month Euribor ends July below 1% After the first rate hike in Europe in more than a decade (0.5 points). Since then, it has risen by more than 130 basis points, a trend that accelerated after a 0.75 point rate hike in September. Currently The annual funding ratio is 130 basis points higher than the official price of money.

A rise in Euribor will have little impact on Spanish mortgage loan collections Due to gradual migration of customers who prefer fixed rates to variable rates. In the summer of 2022, three quarters of new employees are already choosing this type of loan, which is not subject to price fluctuations but is more expensive.

There has been a constant rebalancing of the balance in recent years. If in 2017 Euribor marked 90% of active mortgage loan pricesThis percentage in 2022 decreased to 75% and will remain at around 70% by the end of the year., according to sources in the banking sector. In total, the mortgage portfolio in the Spanish market reached around 460,000 million euros after growing by 1% in 2021.

Although the average mortgage rate is considered to be 150,000 euros and 20 years, the current market reality is different. According to the Spanish Mortgage Association (AEE), was the average loan default in Spain at the end of last year 82,371 euros, he had 10.6 years to live and about 8.6 years of work experience.. The number of existing loans increases 5.5 million mortgageOnly 4.1 million of them will be affected by the increase in Euribor.

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