According to Deco/Dinheiro&Direitos modelling, house payments will fall again in August, with the largest declines occurring in contracts indexed to the 12-month Euribor.
According to Lusa’s modeling by Deco/Dinheiro&Direitos, a client with a 150,000 euro loan for 30 years, indexed to the 12-month Euribor and with a “spread” (bank profit margin) of 1%, would pay 762.35 euros, 56.6 euros less than in August 2023.
As for loans indexed to the six-month Euribor, the rent for housing – under the same conditions – falls to 772.92 euros, 22.4 euros less than in February.
Finally, in the case of contracts indexed to the three-month Euribor, the August premium of €776.6 represents a decrease of €18.12 compared to May.
These values were calculated based on the average Euribor rate in July: 3.644% for six months, 3.685% for three months and 3.526% for 12 months.
The average Euribor rate considered for the purposes of considering a floating rate loan is equal to the rate for the month preceding the signing of the loan agreement.
Since the beginning of the year, people with mortgages have seen their monthly payments decrease as the term of the contract is extended.
Euribor began to fall on expectations that the European Central Bank (ECB) would start cutting its interest rates in June, which happened on June 6 when it cut three interest rates by 25 basis points, the director’s swear.
At its last monetary policy meeting on 18 July, the ECB decided to keep interest rates on hold.
Thus, the rate on the main refinancing operations remains at 4.25%, the rate on the liquidity provision mechanism remains at 4.50%, and the rate on the standing deposit agreement remains at 3.75%.
Author: Lusa
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.