Euribor Rises Slightly to 2.172% in September, Variable Mortgage Payments Still Decrease
The euribor has seen a slight increase, ending September at 2.172%. This marks the second consecutive monthly rise in mortgage rates, with a total increase of 11.6 basis points since August. Despite this, those with variable mortgages will still see a decrease in their monthly payments due to the current mortgage rates remaining close to 2%.
The euribor's recent behaviour has been closely watched. It has decreased by 76.4 basis points compared to September 2024, but it does not decrease in a straight line, as explained by Trioteca's CEO. Instead, it corrects according to market expectations and ECB messages. HelpMyCash analysts predict the mortgage interest rates will remain relatively stable for the rest of 2025, ending the year between 2.10% and 2.20%.
Banks may improve their offers in certain cases, with expectations to break through the psychological barrier of 2% by the end of 2025 or early 2026. This could be beneficial for those with variable mortgages. iAhorro's director of mortgages notes that a euribor close to 2% keeps the market in a positive dynamic. For instance, a person with a 150,000 euro mortgage over 30 years with a 0.99% margin above euribor would see their monthly payment decrease by 64 euros at the September level.
The recent increase in 30 year mortgage rates, while slight, is the second consecutive monthly rise. Despite this, those with variable mortgages continue to benefit from lower monthly payments. Analysts attribute this increase to the possibility of the European Central Bank freezing further interest rate cuts. However, the overall outlook for the rest of the year remains stable, with expectations of a slight decrease in the mortgage rates.
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