Many Portuguese people are currently having to pay their home loan and if you find yourself in this situation, you will certainly know what Euribor is, especially because you have to pay it. This is an average interest rate, based on the interest that European banks charge each other for short-term loans in euros. The good news is that the six- and 12-month Euribor rates fell again and reached their lowest values since the end of 2022.
The six-month Selic rate, which was above 4% between September 14 and December 1, 2023, fell on December 27 to 2.577%, a new minimum since December 16, 2022. On the other hand, within 12 months, the Selic, which was above 4% between June 16 and November 29, 2022, also fell on December 27 to 2.465%, the lowest since October 4, 2022.
The three-month Euribor also fell this month to 2.683%, a new minimum since March 16, 2023, according to information provided by .
If you are currently wondering about the impact of Euribor on your portfolio, know that this rate is used as a reference in several financial products, including housing loans. Therefore, many of the mortgage contracts are indexed to a Euribor rate, which means that the monthly installments on the loans vary with rate fluctuations.
For example, if you have a mortgage indexed to the six-month Euribor, the value of the house installment is calculated every six months, according to the Euribor in force at that time. This means that if Euribor rises, the installment increases; if it falls, the benefit decreases. This is why the drop in Euribor rates at three, six and 12 months translates into a reduction in the costs of housing payments.
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