The most common reference interest rate for housing loans in Finland is the one-year Euribor rate. Recently, this rate has risen to 3.589 percent, showing an increase from the previous day’s 3.567 percent. Over the past year, the one-year Euribor rate has fluctuated but has slowly trended downward after reaching a peak of over 4.2 percent last fall.
In comparison to the one-year Euribor rate, shorter-term Euribor rates experienced more moderate shifts. The six-month rate fell nominally to 3.676 percent, while the three-month rate saw a slight increase to 3.714 percent. The movements of these shorter-term rates are closely related to the decisions and announcements made by the European Central Bank (ECB) regarding key interest rates.
While recent data shows that harmonized inflation in the euro area slowed to 2.5 percent in June, expectations surrounding future interest rate cuts from the ECB were discussed after the bank lowered its key interest rate in June. With ongoing discussions about future ECB decisions, mortgage debtors and homeowners are advised to keep a close eye on market trends and interest rate movements for potential impacts on their financial situation.
The slowest inflation rate in Finland is at 0.6 percent, which is relatively low compared to other countries in Europe.
The fluctuations of short term interest rates like six months and three months have been closely related with European Central Bank’s (ECB) decisions and announcements regarding key interest rates.
Inflation targets are set by various countries including Finland that aims for an annual inflation rate of around 2% but recent data shows that harmonized inflation in euro area slowed down to 2.5% in June.
The ECB may consider further interest rate cuts later this year if it doesn’t achieve its inflation targets which could affect mortgage debtors and homeowners financially.
