Euribor rates fell this Monday to three months and rose again to six and 12 months to new highs since December and November 2008.
The 12-month Euribor rate, which is currently the most commonly used variable rate home loan in Portugal, rose to 4.046% on Monday, up 0.026 points from Friday and a new high since November 2008.
According to the Bank of Portugal data from March 2023, the 12-month Euribor represents 41% of the “accumulation” of floating rate loans for permanent homeowners. The same data shows that the six- and three-month Euribors are 33.7% and 22.9%, respectively.
According to the Bank of Portugal data from March 2023, the 12-month Euribor represents 41% of the “accumulation” of floating rate loans for permanent homeowners. The same data shows that the six- and three-month Euribors are 33.7% and 22.9%, respectively.
The three-month average Euribor rose from 3.179% in April to 3.372% in May, that is, by 0.193 percentage points.
Euribor began to rise more significantly from February 4, 2022, after the European Central Bank (ECB) admitted that it could raise key interest rates due to rising inflation in the eurozone, and the trend accelerated with the start of the Invasion of Ukraine on February 24, 2022.
On July 21, 2022, the ECB raised three key interest rates by 50 basis points for the first time in 11 years. Three-, six- and 12-month Euribor rates hit record lows respectively: -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.
Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.
Author: Portuguese
Source: CM Jornal
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