The Euribor rate fell this Friday in three months to a new low since July 20, 2023, and rose in six and 12 months compared to Thursday.
With Friday’s changes, the three-month Euribor rate, which fell to 3.686%, was below the six-month rate (3.691%) and above the 12-month rate (3.622%).
The six-month Euribor rate, which in January became the most commonly used rate in Portugal for variable-rate home loans and exceeded 4% between September 14 and December 1, rose this Friday to 3.691%, plus 0.002 points, after reaching 4.143%. October 18, highest since November 2008.
Bank of Portugal (BdP) data for April indicates that the six-month Euribor rate is the most used, accounting for 37.5% of total floating rate homeownership loans. The same data shows that the 12- and three-month Euribor rates were 34.1% and 25% respectively.
The 12-month Euribor rate, which was above 4% between June 16 and November 29, also rose this Friday to 3.622%, up 0.014 points from the previous session, against the highest since November 2008, 4.228%. recorded on September 29.
The three-month Euribor rate, on the contrary, fell to 3.686%, plus 0.014 points and a new minimum since July 20, 2023.
On October 19, the three-month Euribor rate reached 4.002%, the highest since November 2008.
On June 6, the ECB cut key interest rates by 25 basis points after holding them at their highest level since 2001 for five meetings and making 10 hikes since July 21, 2022.
The next ECB monetary policy meeting will take place on July 18.
This reduction in key rates should lead to a moderate reduction in Euribor rates and thus a reduction in the provision of home loans.
The average Euribor rate fell in May for all maturities, but more sharply than in April and for shorter maturities.
The Euribor average in May fell 0.073 points to 3.813% in three months (compared to 3.886% in April), 0.052 points to 3.787% in six months (compared to 3.839%) and 0.021 points to 3.681% in 12 months (up from 3,702). %).
Analysts expect Euribor rates to reach around 3% by the end of the year.
Euribor is set as the average rate at which a group of 19 eurozone banks are willing to lend to each other on the interbank market.