The 12-month Euribor, a widely used indicator in Spain to calculate variable mortgages, is expected to close March with a slight increase, hovering around 3.72%. This means that mortgage holders who review their loans annually will see a higher fee, but those who review semi-annually will experience some relief.
As of March, the average Euribor rate stands at 3.72%, an increase from its February value of 3.671%. A year ago, the Euribor was at an average of 3.647%, meaning that those who review their mortgage annually will see a significant increase in their fees. However, for those who review every six months, there will be some relief.
The rise in the Euribor in March is likely due to global economic factors and central bank decisions. Analysts predict that the Euribor will likely remain stable or trend slightly downward until June when the European Central Bank is expected to reduce interest rates. However, uncertainties such as economic slowdowns, inflation and geopolitical conflicts could impact its trajectory in the future.
In the short term, it is expected that the Euribor will fluctuate around 3.7% with the possibility of significant drops in the longer term due to various factors such as market trends and central bank decisions. Therefore, it is crucial for mortgage holders to stay informed about market trends and make informed decisions regarding their loans based on this information.
In conclusion, the behavior of the 12-month Euribor is closely linked to global economic factors and central bank decisions. Mortgage holders should stay informed about market trends and make informed decisions regarding their loans based on this information to avoid financial pitfalls caused by fluctuations in interest rates and other economic factors.