Euskaraz irakurri: Euriborra, urtebeteko igoerak atsedenik gabe

The Euribor celebrates a year of relentless increases. In February 2016, the Euribor was negative for the first time in its history. Since that day, and for more than 6 years, this reference index for calculating most mortgages has always remained at negative rates, reaching its all-time low of -0.504% in January 2021.

However, a year later, in January 2022 the Euribor began an unstoppable rise. In March this index reached 3.647%, that is, 0.113 points more than the previous month.

Euribor graph. Photo: EITB Media.

The Euribor is the index to which most mortgages are referenced. Depending on how the index moves, they will have to pay more or less for their home loan each month.

A heavy burden for variable-rate mortgages

This increase will be felt a lot among those who must review their quotas with that index. The monthly mortgage payment will rise by around 190 euros for every 100,000 euros of outstanding capital, which means paying about 2,280 euros more per year for every 100,000 euros.

According to the Report on the social impact of the rise in interest rates in the Basque Country, the average mortgage in the Basque Autonomous Community has risen to 720 euros. The Basques allocate 30% of their income to their payment, bordering on what is considered tolerable. The report from the Department of Housing of the Basque Government asks banks for flexibility towards their clients, in anticipation that this 2023 and next year the problems of families to face mortgage payments will worsen.

According to a study prepared using data from the real estate portal Fotocasa and the InfoJobs platform, the average price of housing in the Basque Country stood at 233,000 euros last year and the average salary was 25,400 euros, with which for Settling the housing payment requires allocating the full gross salary for 9.2 years, an effort somewhat higher than in 2021 (9.1),

Will the Euribor continue to rise?

According to the Organization of Consumers and Users (OCU), given the current uncertainty it is difficult to know how much interest rates can rise and for how long. On the one hand, we continue to have very high inflation, which the central banks of the different economies, including the European Central Bank, are trying to curb by raising interest rates, which inevitably causes rises in the Euribor.

On the other hand, we are facing a slowdown in the economies and a possible financial crisis due to the fall of Silicon Valley Bank and Credit Suisse, something that a rise in interest rates could further aggravate: the European Central Bank will have to find a balance between the control inflation and avoid the slowdown of the economies of the euro zone.

Given this scenario, it is very difficult to make forecasts. The priority at the moment is to try to tackle inflation, so it is realistic to think that rates will continue to rise, but it is also about avoiding an economic slowdown, so it is necessary to find a balance.

Source: Eitb

Alia

Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.