The 12-month eurbor, the most commonly used indicator in Spain to calculate variable mortgages, is expected to close March with a slight increase, around 3.72%. This means that those who review their mortgage annually will see a small increase in their fee, while those who review semi-annually will experience some relief. The eurbor has been on the rise, standing at an average rate of 3.72% in March, compared to 3.671% in February and 3.647% a year ago.
For mortgage holders who review their loans annually, this means their fees will become more expensive. However, for those who review their payments semi-annually, there will be some relief. The eurbor is at its highest level since November, indicating some stability and potential for a slight downward trend in the coming months. Analysts attribute the recent increases in the eurbor to the tough stance of the European Central Bank and uncertainties in the geopolitical field.
Despite initial expectations of a significant drop in the eurbor due to potential rate cuts by central banks, the indicator has remained relatively stable. Experts predict that the eurbor may continue to fluctuate around 3.7% in the short term, with small rises and falls. In the longer term, there may be a significant decrease starting from June, potentially ending up in the range of 3% to 3.5% by the end of 2024.
In conclusion, the eurbor’s fluctuations impact mortgage holders differently depending on their review frequency. While annual reviews may lead to increased fees, semi-annual reviews could provide some relief. The future trajectory of the eurbor remains uncertain, but experts foresee potential stability and even a downward trend in the months ahead.