Economy / Finance.- The Bank of Spain confirms that the Euribor fell in May to -0.127% How to change the conditions of a mortgage. Calculator and toy house. PIXABAY
MADRID, 1 (EUROPA PRESS)
The Bank of Spain has confirmed that the Euribor, the index to which most of the Spanish mortgages are referenced, closed the month of May at historical lows in the monthly rate, standing at -0.127%, compared to -0.119% in April .
Thus, the Euribor experienced a decrease of 0.114 points in the last twelve months. With these values, the mortgages of 120,000 euros to 20 years with a differential of Euribor + 1% to those who review them will have a reduction of about 72.84 euros in their annual fee or, which is the same, 6.07 euros per month.
The data corresponding to the month of May also shows a decrease, to -0.127%, of the Mexican peso, the interbank rate at one year that served as an official reference for the mortgage market for transactions carried out prior to January 1, 2000.
The Euribor entered in February of last year in negative territory for the first time in history before the ultraexpansive policy of the European Central Bank (ECB) to prop up the recovery in the euro zone.
The index remains sunk below 0% – current level of interest rates in Europe – about to meet fifteen consecutive months, although it is true that the falls are slowing.
These reference indices for the mortgage market are valid as of their publication in the Official State Gazette (BOE), which normally occurs a few days after its dissemination by the supervisor.
WILL CONTINUE IN NEGATIVE WHILE THE ECB MAINTAINS THE STIMULUS
In the opinion of XTB analyst Gustavo Martínez, this interest is “increasingly negative” and will remain so “as long as the monetary stimulus continues”.
“Let’s think that, if there is an excess of money supply in banks without there being a real demand for bank credit, it is normal that they are willing to charge an interest to demand money they do not need,” he told Europa Press.
According to the analyst, lending money and paying for it “will continue to be the general tone if the European Central Bank (ECB) does not put an end to these stimuli allowing demand for credit and money supply to adjust.”
“The reality is that, in the face of this imbalance of monetary equilibrium, inflation is a fact and, as a consequence, the ECB will not only have to withdraw stimuli, but it will have to cool the economy with interest rate increases making it more attractive and fluid supply of credit than in the current situation, “added the expert.
If this were to occur, the situation would normalize “with a consequent increase in the volume of interbank credit and an increase in the volume of credit in the real economy”, that is, consumer loans and mortgages and, therefore, a increase in the Euribor that will make the indebtedness, mainly variable rate mortgages and consumer loans, “become inexorably expensive”.