Close to 3% closed Euribor in August, moving upwards for the sixth consecutive month and recording levels not observed since September 2024.
The basic interest rate 12 months for floating housing Loans in the eurozone, it closed at 2.95%, compared to 2.855% in July, marking a new high in nearly two years.
«Since the start of the Gulf war, Euribor has increased by nearly 0,7 percentage points, which means housing loans have become an average of 900 euros more expensive annually. The average monthly tranche for a standard loan of EUR 150,000, lasting 25 years, is increased by EUR 65», report market factors in Maritime.
«This increase is even worse news for households with floating housing loans whose interest rates are to be adjusted soon»They add. They even recall that a year ago, Euribor was at 2.14%, 0.8 percentage points below the current level. Six months ago, it was at 2.221%, 0.7 percentage points lower.
Indicative data
The figures for increasing the loan's installment are only indicative, they certainly highlight banking factors, as much depends on the outstanding capital and the remaining maturity of the housing loan.
Housing loans usually use the French depreciation system, meaning that a larger proportion of payments go to interest in the early years and the percentage to capital increases as the duration of the housing loan progresses. «Therefore, the Euribor interest rate increase has less impact on those in the later years of their housing loan», explain the same sources.
«Euribor's increase could also complicate things for those who wish to buy a home. Banks adapt their bids to interest rate developments. Indeed, in recent months, banks have already increased their prices and the new scenario could lead to further adjustments in the coming months», report market factors .
The uncertainty about the Gulf War
In any case, the August increase confirms the upward trend of Euribor since the beginning of the year.
The indicator retreated to 2.221% in February, but then climbed to 2.565% in March, due to the macroeconomic uncertainty created by the war in the Middle East. Since then, he continued his upward trend.
In addition, during August, the indicator exceeded the 3% psychological barrier on a daily basis.
Euribor «predicts» a tightening of monetary policy and an increase in interest rates by the ECB.
« The market moves faster than the central banks, which have not yet confirmed whether there will be any further increases in interest rates, which is already reflected in monthly payments for floating rate housing loans», say market players.
Interest rate increases by the ECB
Attention is now being drawn to the meeting of the European Central Bank on 10 September.
The European Central Bank increased its official interest rates to 2.25% in June, the first tightening of monetary policy in nearly three years, in response to the constant increase in prices. The market expects at least two more increases in the coming months, bringing official interest rates to 2.75% by spring.
«Euribor is on its way to the September meeting having already done much of the work in advance. By increasing 25 basis points as the most likely scenario, the market will focus not only on whether the ECB will increase interest rates, but also on how many further increases will be made», explains Pablo Vega, financial expert at Roams. «This will probably be the real catalyst to determine whether the 3% level will function as a consolidation zone or as a starting point for a new upward drive», adds the Spanish economist.
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