Mitte Realty

Euribor rate slowly but steadily increasing Currently the average monthly Euribor, which is used in calculating the interest rate on mortgages is 1.36%, while in June it was equal to 1.28%. The final value of the index in July 2010 will be about 1.40% but not more. It should be noted that this would be the maximum value of the index Euribor, since August 2009. At present, many are discussing the change values of a few hundredths, although larger scale of time is virtually zero change in July 2008 the value of Euribor was 5.39%, and over the next 14 months fell sharply to 1.26%. What will be the Euribor in August 2010? According to the Department of Real Estate "Gulf Stream" and the site, in July 2010, in contrast to June, when many countries were scheduled to restore confidence in financial institutions to the public, including in Spain. Nevertheless, the value of Euribor rates remained unchanged, and increased from 1.32% to 1.40% (as of today). And this gradual growth leaves us with hope that this indicator will continue to decrease, and even means the opposite: in August we should expect an increase in the values of Euribor for a few more hundredths, which will eventually lead to a value higher than 1.40%.

If the trend does not change the behavior of Euribor, its value in August may be at the level of 1.50%. The good news is that in August 2010 Euribor for the first time in many months will be higher than its value during the same period the previous year, ie all leads to the fact that in August 2010, the value of Euribor exceeds its value last August 2009, and this in turn for the first time in a long time will lead to increase in annual volumes of mortgages at the expense of those contracts where the terms of credit are reviewed every 6 months. Thus, with each revision of contracts for housing loans we are gradually moving away from low-cost mortgages to more expensive, and the value of Euribor 1,5% is still very small compared to the historically average. All this means that even those who in August in connection with changing the value of their mortgage Euribor review contract still on the mortgage will have a very low interest rates.