Euribor surpasses 3%, highest in 2 years: mortgage rises ~65 euros per month
WHAT HAPPENED
The daily Euribor reached 3% and the average for August is at 2.94%, compared to 2.114% a year ago. When reviewing a typical variable mortgage, the payment would increase by about 65.5 euros per month: from 700 to around 765 euros.
WHY IT MATTERS
The Euribor follows expectations about the rates of the European Central Bank. If markets believe they will decrease more slowly, the cost of borrowing money rises. Variable mortgages, credit, and home purchases feel the impact first; construction and consumption may cool down.
AND FOR YOUR PORTFOLIO
For the wallet, an annual review can take away about 65 euros monthly, while a fixed mortgage does not change due to this movement. In a long-term portfolio, this data helps to understand why banks, real estate companies, and consumer-related businesses may react differently.
💬 TELL IT LIKE THIS
“When the Euribor rises, a variable mortgage can become a much heavier monthly expense, even if the salary does not change.”