TheBank of Spainhas confirmed that theEuribor, the index to which most Spanish mortgages are referenced, closed December in the-0.261%,vs. -0.272%November, thus chaining four months of increases.
In daily rate, the Euribor stood on Tuesday 31,last day of the month with banking activity, in -0.249%, so that it showed this average of -0.261%, its highest level since June (-0.189%).
The one-year interbank rate, which served as the official reference of the mortgage market for operations carried out before January 1, 2000, also amounted to -0.261% in December.
This means that the mortgages of 150,000 euros at 30 years with a Euribor differential + 0.99% to which they are reviewing will experience acheaper € 104.64 in its annual feecompared to the same month last year or, what is the same, of 8.72 euros per month.
The ascending behavior of the Euribor throughout 2018 and the end of the asset purchase program of theEuropean Central Bank(ECB) led analysts to discount a rate hike that led to monetary normalization and to think that the indicator would approach zero at the end of 2019 to return to positive terrain in 2020.
However, its positive trend was interrupted in February and the Euribor marked anew historical low of -0.356% in August, after the ECB announced that the rates would remain until at least June 2020 and leave the door open for a further descent. Since then it has bounced slightly, which some analysts interpret as a mere adjustment.
The director of Mortgages of iAhorro.com, Simone Colombelli, has affirmed that 2019 has been a "very good" year for allcitizensmortgaged, especially for those who signed their loan between June and December.
"In the first four months of the year the Euribor was in negative, but with data a little higher than in 2018, so these citizens could not benefit from large reductions in their quotas. However, from June to December the Differences with respect to 2018 have been greater, which has caused monthly payments of those who signed their loans in these months, "he explained.
According to the Mortgage director of iAhorro.com,it is "possible" that during 2020 there is a change in trend and the Euribor "rises slightly", although he acknowledges that it is "very difficult" to anticipate how much longer he will remain negative.
The expectations of seeing a speedy rate hike by the ECB or a positive Euribor have moved away and no trend can be spoken at least until the first quarter of the year arrives and the direction Christine Lagarde will take to the front is clarified of the ECB.
On the other hand, the Euribor in minimums and the demand of citizens for fixed mortgages has led to this product having led the offers of the main banking entities.
In a context in whicha rise in the price of housing in Spain is expected in 2020, especially in the big cities, and in which the banks "will have to improve their offers to attract clients", Colombelli has pointed out that the fixed mortgages can become "a great ally" for those who look for "a cheap and long-term loan during 2020 ".