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Mortgages will begin to fall in May, although they will do so very slowly and with less force than expected

Spain, April 18, 2024.- We have been seeing the value of the Euribor drop for many months, but the majority of mortgage holders have not yet noticed it in the monthly payment, this is because mortgages in Spain are usually reviewed every twelve months and the Euribor has not yet reached lower values ​​than those recorded a year ago. Fortunately, the turning point will come with the Euribor in April, when this indicator, the most used in variable mortgages in our country, finally marks its first year-on-year drop. This means that those whose review is due in May (generally the Euribor of the previous year is taken for these reviews) will begin to see the first reductions in their monthly installments. This is the beginning of a downward trend that should last several months, at least until the end of next year. Given this panorama, it is normal to wonder if levels like those of three years ago will be reached; Unfortunately, according to Carlos López of Euribor.com.es, this will not be the case.”The good news is that rates are going to lower and that the worst is over and the bad news is that we will almost certainly never see the Euribor at 0% and it will be difficult for it to go below 1%. Let us remember that the historical average of the Euribor is currently at 1,863% and that is the figure towards which it should move in a few years.” Regarding the forecasts For 2024, Euribor.com.es are moderately optimistic. “For now this year we will continue with the declines, although not as pronounced as we thought at the end of last year, since inflation has not been controlled as necessary in the euro zone and it remains uncontrolled in the US, so the trend will be downward, but we will probably close this year above 3%.” So next month will mark the beginning of mortgage relief for many families, although they will still have to wait several months for the pockets to really notice it.

Contact Contact name: Carlos Lopez Contact description: Euribor.com.es Contact phone: 666625624