Euribor fell to another record low of 0.163 in June, a decline of 1.2% in a month, and 68% in a year, reducing monthly mortgage payments for many borrowers in Spain.
Repayments on a typical mortgage of €120,000 with a 20 year term will have gone down by 230 €/year, or 19 €/month.
It’s hard to see how 12-month Euribor can fall much lower as it is already near the Eurozone’s base rate of 0.15%.
But analyst say a Grexit could create tension and push up rates, whilst a deal to keep Greece in the Eurozone could push rates down even further towards the base rate. So events in Greece could determine the prices of mortgages in Spain.
NEW MORTGAGE LENDING RISES
New mortgage lending for homes rose 21% in April to 18,857, reveal new figures from the National Institute of Statistics (INE)
The average new loan was €100,683, up a fraction on the same month last year. The average mortgage rate was 3.29% on new home loans.
New mortgage lending was up 23% in the first four months of the year, compared to same period last year. That means more money chasing homes in Spain, though the market is still oversupplied in many areas, which will prevent house prices from rising.