Another month closes with the Euribor in negative figures
Another month has just ended and with it the Euribor, the rate at which the majority of mortgages taken out in Spain is measured, has registered in negative figures yet again.
This is now the third consecutive month that the mortgage reference rate has ended a month below 0%.
Throughout the whole month of April, the Euribor registered a negative figure on a daily basis, and finally closed the month at0.012%.
This means that once again, mortgage holders who are due an annual revision in the next month or two will see their monthly payments reduced by around 10 euro for a 120,000-euro mortgage over 20 years.
With new mortgages being taken out, the banks are now adding new clauses to confirm that even if the Euribor drops below 0%, mortgage holders will never have money paid back to them by their bank, which is what, in theory, should happen.
The most that mortgage holders can expect in this case is that the amount of interest they have to pay remains at 0 euro.
The Euribor also ended the months of February and March in negative figures, at -0.008% and -0.012%.
Experts believe that the Euribor will remain at the same rate for a few months, but that it has already reached minimum levels.
Due to the fact that crude oil prices have risen slightly, causing a small increase in inflation, analysists are certain that this will detain the Euribor from dropping any further.
For the immediate future, the Euribor will meander around its current rate, but gradually gather momentum until returning to positive figures, which will definitely be by the end of the year.
In order to gain an idea of when this will happen, we need to keep a close eye on the evolution of oil prices, inflation and the yield from national bonds.