Euribor rates for the shortest terms – three and six months – fell in January for the first time in two years, providing some relief to households with mortgages. And everything indicates that they will continue to decline until the end of next year.
The trajectory that began in January this year will continue until December 2025, according to a Bloomberg forecast announced by the governor of the Bank of Portugal at a banking forum on Thursday. In January, the average 3-month Euribor rate fell to 3.91%. The shortest rate used on mortgages, the 3-month rate, is expected to settle at 2.13% in December 2025 and then stabilize thereafter, according to Bloomberg data. According to the Bank of Portugal, the three-month Euribor rate is 23.9% of the amount of loans for permanent homeownership with floating rates.
The 3-month Euribor reached its lowest ever value (-0.605%) on December 14, 2021.
Euribor rates began rising sharply from the start of 2022, reflecting the European Central Bank’s decision to raise interest rates in the face of rising inflation exacerbated by the war in Ukraine.
Author: Raquel Oliveira
Source: CM Jornal
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