Today is José Luis Moreno’s birthday and it turns out that he does not want to have a party at his house because of a problem he once had with some Kosovar Albanians, so he told my boss that if I could leave him some of his houses in Madrid for the celebration, the idea is to gather the guests 6 at a time in different houses and he goes around. At the moment there are 60 guests. My boss is very happy because he esteems him very much and says that it reminds him a lot of what he does with me on the blog, that I am like Rockefeller, always talking about economics and he like José Luis Moreno, behind taking the money. The truth is that I do not know what this is about because I am very young but I will take it as a compliment.
The one that we do not know if it is still partying is the Euribor, which has been rising more than we would like for a few days. What will he have done today?
The most used indicator in mortgages in Spain takes a break from the promotions of these days and ends the week repeating value at -0.478%, which equals the annual maximum of last March 1. Anyway, you don’t have to worry too much since the April average remains at -0.489% which is a slight reduction with respect to the value of February but a large decrease with respect to the value of April 2020 when it marked -0.108% with those who review now they will have good news. For example, A mortgage of € 200,000 that you review annually will see how the monthly payment will be lowered by about € 33
Regarding the future of the Euribor, little by little clouds are beginning to be seen that could twist it a little, today we have learned that Spanish inflation has climbed to 1.3% and if it continues like this in the Euro zone it could become a problem that would force the ECB to take drastic measures such as a rate hike.
However, the Euribor worries fewer and fewer people since in January of this year more fixed-rate mortgages were registered in Spain than at variable interest, and the tendency of banks is to offer more fixed ones despite the fact that their clients are currently interested plus the variables.
The ECB has begun to publish the value of what could be the substitute for Euribor, the EuroSTR, The objective of its publication is to promote a wide use of this interest rate and not only as an alternative to Eonia and Euribor, according to the ECB, which specified that these compound average rates cover the maturities of one week, one month, three , six and twelve months.