The daily Euribor exceeded 4% for the first time since November 2008

He euribor up to twelve months, until which most mortgages in Spain this Friday it reached a daily rate of 4.020%, surpassing that level for the first time since November 26, 2008.

According to market data collected by Efe, after reaching this daily rate, the monthly average, which is used to calculate variable mortgage installments, reached 3.929% in June.

Euribor exceeded that 4% in the daily rate after yesterday European Central Bank (ECB) raise your own Interest rates a quarter of a point to 4%, the highest level since June 2000, as it predicts that inflation “staying too high for too long.”

Likewise, the President of the ECB, Christine Lagarde considers it “probable” that the institution will raise interest rates again in July.

Euribor closed May with an average rate of 3.862%, a new maximum since 2008 (the outbreak of the financial crisis) and, although it slowed down its growth compared to previous months, it again made the installments of these loans more expensive.

The average Euribor rate in May was slightly higher than the one in April (3.757%), ie 105 basis points more compared to 110 which it grew in the previous month, ie 113 basis points which it experienced in March. .

The average ticket price for buying a house: 42,300 euros

The increase in financing costs led to mortgage installment has grown 46% since 2019, according to a study by Idealista collected by Europa Press, which also states that the savings required to repay the mortgage increased by 21%up to 42,300 euros.

In particular, the real estate portal explains that with a 30-year mortgage, according to the average interest rate registered in May 2019 of 2.15%, the average mortgage payments for the first year were 352 euros for a two-bedroom house in Spain. , while in May 2023, with the average interest rate in April of 3.61%, according to data from the Bank of Spain, the average amount reaches 513 euros, or 46% more.

Price increase living place and the refusal of banks to finance more than 80% of the appraised value, along with other related costs such as taxes and others inherent in the operation, have caused the amount of savings that must be invested to become a home owner to increase by 21% in the last four years .

The average ticket price for a two-bedroom home in Spain was €34,906 in May 2019, while it was €42,293 in May 2023, according to Idealista.

Pontevedra, among the cities where you have to save more

According to the study, Cuenca and Santa Cruz de Tenerife are the capital cities of the provinces where the savings that customers have to give increased the most, with 42% and 41% respectively. Followed by increases in Palma (39%), Alicante (33%), Pontevedra (32%) and San Sebastian (28%). IN Ourense was reduced by 2%.

Among the main Spanish cities, in Madrid the increase was only 7%; while in Barcelona it grew by only 1% in the last four years.

For the spokesperson of Idealist, Francisco Iñareta, it is important to look at the effects that the European Central Bank’s announcement that it will continue to raise interest rates can have on the housing market: “The situation for potential buyers does not stop getting complicated. On the one hand, interest rate increases have a direct impact on the mortgage market , making loans more expensive. Meanwhile, prices continue to rise and demand a higher volume of savings,” he explains.

Although for now, he points out, “those two phenomena coexist with the existence of demand capable of paying, which is still sufficient to maintain the market”, the rise in rates could stop that trend.