The 12-month Euribor continues to show a higher-than-expected rate of rise. In this Friday’s session, it was fixed at 2.5%, 0.058 basis points more than in the previous session, and which raises it to a new high since 2009.
The rises in recent weeks should put the monthly average of this rate above 2%, well above the 1.249% recorded in August. A value that contrasts with the -0.5% observed at the beginning of the year.
The value of Euribor at 12 months and other terms, which also continue to rise, will increase the cost of new loans, but also all existing contracts, which are reviewed every three, six or 12 months, according to the rate that is on the basis of contracts.
The six-month Euribor, the most used in the set of loans existing in Portugal in housing loans, rose this Friday to 1.803%, 0.040 more points and a new maximum since September 2011. This value, approaching the 2%, has been accumulated since June 6th, that is, in just about four months.
The three-month Euribor also rose by 0.033 points to 1.153%, a new high since February 2012. This term entered positive territory on 14 July.
Euribor rates are also added to a spread or the bank’s commercial margin, which, in average terms, is 1.2%, which significantly increases the cost of new and old housing loans, especially those with higher amounts and those contracted during the interest rate period. negative.
The rise in interest rates started very gradually at the beginning of the year, when the European Central Bank (ECB) signaled the first interest rate hike in 11 years, to stop the rise in inflation, exacerbated by the Russian invasion. from Ukraine. The size of the rises, 50 basis points in July and 75 points in September, and the indication of two to four more in the coming months, explain the strong rises in Euribor in recent months.
