You have to go back to July 2012 to see these numbers.
The 12-month Euribor, Spain’s most commonly used measure of mortgage payments, rose for the 13th day in a row on Wednesday, surpassing 1 percent for the first time in nearly a decade.
According to data obtained by Efe, the daily rate for this indicator has reached 1.067% today. You have to go back to July 23, 2012 to find levels above 1%, and July 11 of the same year to surpass the levels marked this Wednesday.
Euribor rose every day in June and has risen six-tenths this month, driven by changes in monetary policy from central banks around the world that are raising interest rates to curb inflation.
The surge in recent days has coincided with the European Central Bank (ECB) confirming that it will end sovereign debt purchases in July and raise interest rates.
Bonds rallied strongly and stocks fell last week as the Fed hiked rates by 0.75%, opening the door for a fresh rally in July.
The shift in monetary policy by major central banks became apparent at the beginning of the year, and Euribor has since gained half a point.
The indicator closed in negative territory (-0.501%) in 2021, recorded a negative daily rate (-0.014%) on April 20 last year, and is over 1% today.
How does it affect mortgages?
As Euribor rises, variable-rate mortgage installments will become more expensive because entities use the current month’s average data when reviewing loans on a regular basis.
The change will affect most mortgages covered by the index. On the other hand, homeowners with a fixed-rate mortgage will continue to pay the same monthly fee. That’s why contracts for this type of credit have increased in recent months.
