The Euribor will close May with significant increases (although it could have been worse)

We have practically reached the halfway point of May and we can get a fairly accurate idea of ​​where the Euribor average will close for this month. First, let’s see the values ​​quoted up to now.

  • Monday, May 2: 0.213% (up 47 thousandths)
  • Tuesday, May 3: 0.225% (Up 12 thousandths)
  • Wednesday, May 4: 0.234% (Up 9 thousandths)
  • Thursday, May 5: 0.253% (up 19 thousandths)
  • Friday, May 6: 0.246% (down 7 thousandths)
  • Monday, May 9: 0.263% (up 17 thousandths)
  • Tuesday, May 10: 0.236% (down 27 thousandths)
  • Wednesday, May 11: 0.227% (down 9 thousandths)
  • Thursday, May 12: 0.23% (down 3 thousandths)
  • Friday May 13: 0.182% (down 49 thousandths)

Apparently the strong bullish trend we started May with has calmed down quite a bit as markets have priced in at least two rate hikes for the remainder of the year and we should have a calmer end of the month. Although the monthly average at this time is 0.23%, given the crash of the last day, we estimate that it will close the month at around 0.2%

However, there are still 12 securities to be listed and it could vary depending on the information released by the ECB.

Those who review their mortgage this month will see significant increases, both for those who do it annually and those who do it quarterly, These were the values ​​they had up to now.

  • Annual review: Euribor May 2021: -0.48%
  • Semi-annual review: November 2021: -0.487%

How much will the mortgage go up for those who review in May 2022?

To calculate it, we are going to use an average mortgage of €180,000, with a maturity of 25 years and an interest rate of the Euribor plus a differential of one point.

  • With the Euribor of May 2021 (estimated average of 0.2%) the new monthly fee will be 694.8
  • those who review annually with the Euribor of May 2021 they currently paid a fee of €640, which will mean an increase of €54.82 per month€658 per year.
  • those who review semiannually with the Euribor of May 2021 they paid a fee of €639 with what it will mean an increase of €55.37 per month€664 per year.

As for today’s news, Christine Lagarde has given clues that the ECB’s first rate hike will take place in July. The Governing Council of the ECB is scheduled to meet again to discuss its monetary policy on June 9, when it will also publish its new macroeconomic projections

Editor of Euribor.com.es. I write about economics, finance, stock market and mortgages