The 12-month Eurbor, a commonly used indicator in Spain to calculate variable mortgages, is forecasted to close March with a slight increase of approximately 3.72%. This means that mortgage holders who review their loans annually will see a small increase in their fees, while those who review semi-annually will experience some relief.
The Eurbor has been steadily rising, 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 currently 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, mortgage holders’ ability to manage their finances effectively depends on how frequently they review their loans’ terms and conditions. While annual reviews may lead to increased fees for some borrowers, semi-annual reviews could provide relief for others during uncertain times such as these when interest rates are volatile and subject to change rapidly.
Overall, it remains uncertain what direction interest rates will take over time as they remain influenced by various factors such as inflation rates and economic conditions worldwide. As such, borrowers should stay informed about changes in interest rates so they can make informed decisions about managing their finances effectively while keeping an eye on future trends that could impact their financial stability and wellbeing significantly.
