Holders of loans with floating interest rates should be favored by the Euribor falling below 3%. The market has not seen these levels since November 2022.
Financial markets have already discounted a drop in Euribor, taking the mortgage rate below 2% in 2025 – to around 1.8% at the end of next year.
“This downward trend experienced by Euribor directly affects mortgage payments”, market representatives explained to Naftemporiki.
“A mortgage of 140 thousand euros for 30 years with a difference of 1% compared to Euribor, with reference to the September 2023 index, which was 4.149%, had a monthly installment of 757.81 euros. With Euribor at 2.945% in September 2024, the mortgage loan installment dropped to 632.06 euros, that is, 125.81 euros less.”
The sharp drop in Euribor is due to the fact that both the ECB and the Fed cut interest rates this month. The European Central Bank was the first to do so with a 25 basis point reduction, but the Fed proceeded more aggressively with a 50 basis point cut, thus putting pressure on the ECB not to rule out a new cut at the meeting. October out. Financial markets are even disregarding sharp interest rate cuts that could accelerate the decline of the Euribor.
