- spain@spectrum-mortgages.com
- +34 936 658 596
The EURIBOR in 2024
The Euribor, a key reference for interest rates in the eurozone, has undergone significant fluctuations from 2023 to 2024. In 2023, the 12-month Euribor saw substantial increases, reflecting the European Central Bank’s (ECB) aggressive monetary tightening to combat inflation. By the end of 2023, the Euribor had climbed to over 4%, its highest in over a decade, directly impacting mortgage and loan costs for consumers and businesses.
Throughout 2024, the trend began to shift. The ECB signalled a potential peak in interest rates early in the year, aligning with slowing inflation and economic concerns. By mid-2024, the Euribor showed signs of stabilizing and even slightly declining. This moderation was attributed to expectations of easing monetary policies as inflationary pressures subside and the eurozone economy navigates a period of slower growth.
These developments have had a notable impact on households and businesses. Variable-rate mortgage holders faced increased monthly payments at the height of Euribor rates in 2023 but could see some relief as rates stabilize.
Looking forward, the Euribor’s trajectory will closely follow the ECB’s monetary policy, which remains contingent on inflation dynamics and economic resilience in the eurozone. This period highlights the importance of monitoring interest rate trends for financial and investment planning.
The below graphic shows the 12-month Euribor evolution since December 2023.
Throughout 2024, the trend began to shift. The ECB signalled a potential peak in interest rates early in the year, aligning with slowing inflation and economic concerns. By mid-2024, the Euribor showed signs of stabilizing and even slightly declining. This moderation was attributed to expectations of easing monetary policies as inflationary pressures subside and the eurozone economy navigates a period of slower growth.
These developments have had a notable impact on households and businesses. Variable-rate mortgage holders faced increased monthly payments at the height of Euribor rates in 2023 but could see some relief as rates stabilize.
Looking forward, the Euribor’s trajectory will closely follow the ECB’s monetary policy, which remains contingent on inflation dynamics and economic resilience in the eurozone. This period highlights the importance of monitoring interest rate trends for financial and investment planning.
The below graphic shows the 12-month Euribor evolution since December 2023.
| Time period | Commentary |
|---|---|
|
Late 2023 |
The 12-month Euribor reached its peak above 4%, driven by the European Central Bank’s (ECB) aggressive rate hikes aimed at controlling inflation. This marked a multi-year high, significantly impacting mortgage and loan costs. |
|
Early 2024 |
The ECB signalled a possible pause in its rate hikes, as inflation began to moderate. This brought stability to the Euribor, though it remained elevated. |
|
Mid-2024 |
Rates began to decline slightly, as the ECB’s cautious approach to monetary easing became apparent. The 12-month Euribor averaged around 3.9%, reflecting a softening stance from earlier highs. |
|
Late 2024 |
By December 2024, the European Central Bank (ECB), which reduced interest rates another 0.25% in December 2024 after four consecutive cuts since June, making a total cut of 1% this year. These measures aim to stimulate economic growth in the eurozone. the 12-month Euribor stabilized further at 2.474% by mid-December. |
The Euribor’s reduction has provided relief for holders of variable-rate mortgages, who have seen their monthly payments decrease. For instance, an average mortgage of 120,000 euros over 20 years could experience a reduction of approximately 92.3 euros per month, translating to an annual saving of about 1,108 euros
Forecasts suggest that the Euribor could continue its downward trend in 2025, further benefiting mortgage holders and potentially influencing the terms of new mortgages.
Should you have any inquiries regarding the content of this article, or any other questions relating to mortgages in Spain, please do not hesitate to reach out to us for further information.
Patricia Nadal
spain@spectrum-mortgages.com