The Euribor opts for falls. After the beginning of the hesitant year, with increases in January, decreases in February, and stagnation in March, the fourth month of the year has drawn a clear downward trend due to the one approved by the US president, Donald Trump. That has resulted in the monthly average of the Euribor has collapsed to 2,143% in April, well below 3,703% of a year ago, the most important reference because most mortgages are updated with respect to the levels of the indicator of 12 months ago. You have to go back back in time to find such a pronounced improvement: it is the largest year -on -year descent of the Euribor since December 2009, more than 15 years ago.
How much savings will that mean? For an average mortgage of 145,673 euros to 25 years – according to the INE data by 2024 -, linked to the Euribor and with a differential of a point, it means paying 134 euros less per month, or what is the same, 1,608 euros less a year. For many homes, it is the equivalent of an extra pay. In addition, the favorable trend still does not give signs of exhaustion: for the first time in more than a year and a half, the indicator in its daily price (this Wednesday is at 2,049%), something that is not disposable that occurs in the next sessions. And the levels were not seen since September 2022, almost three years ago.
The balance of the month leaves a even panorama of ups and downs, with eight sessions in which the Euribor increased, 11 in which it was reduced, and another in which it remained flat. However, the difference has been marked by the amount of the descents, with days in which it seemed to crumble.
Behind the strong setback are the interest rates of the European Central Bank. On April 17, leaving the rate at 2.25%. It has been seven in less than a year, more than any other central bank among the greats. And the point is that there are no signs of fatigue: markets discount between two and three more until they finish 2025, and there are already analysts, such as those of Bank of America, who talk that the soil this year can be at 1.25%, which would mean that they would subtract four type cuts from the current levels.
The commercial war unleashed by Donald Trump is emphasizing the expectations of decreases in interest rates in Europe for its negative impact for economic growth, and in parallel, it is behaving better than expected, very close to the bank’s goal. In addition, although the impact analyzes are still in an initial phase, in the ECB the feeling that tariffs That they will result in price increases, the idea that inflation will give positive surprises in the euro zone is increasingly imposed, increasing the pressure so that the types continue to lower and the financing flowing more cheaper towards companies and families.
The real estate market is heated
That, in turn, is gasoline for new descents from the Euribor. And the effects of this situation not only benefit the already mortgaged. Those who are looking to buy a home can negotiate with the financial entities better conditions that involve saving interest. And the output offers will be more affordable :.
The INE data are going with some delay on the March of the Euribor, but they already detect that trend. The average starting interest rate in mortgages to buy housing in February was 2.96%, the lowest in two years. That is facilitating access to property ownership. The sale of homes, with 60,650 operations, 11% more. And the best February in 18 years with 59,682 transactions, a 13.9% increase compared to the same month of 2024. It already chains eight consecutive months of year -on -year increases.
More fixed type mortgages
The mortgage market is not alien to it. In the first two months of 2025 the number of mortgages to buy housing has increased by 7.5%, and the capital borrowed, 22.7%. The reactivation is being noticed. The 39,084 mortgages to buy housing signed in February are the highest figure for that month since 2011.
One of the scars that has left the inflationary cycle that began at the end of 2021 and was accentuated with the war in Ukraine is a greater predilection for fixed mortgages. The types of types with which the ECB tried to stop some triggered prices did a lot of damage to the mortgages at a variable type, so now, with a geopolitical scenario still very unstable, the fixed type gains ground as a way of protecting against future setbacks: 64.6% of the mortgages on homes were signed in February were to a fixed interest rate, the highest percentage in two years.
