The Euribor, a key reference index for mortgages in Europe, has registered today, tuesday, December 30, a value of 2.258% in its daily rate. This value dose not reflect any difference compared to the previous day’s data. Today, The monthly average of the Euribor for the month of December stands at 2.267%.

In its last meeting, the European Central Bank (ECB) decided to maintain interest rates after eight reductions during the last year seven of them consecutive. In June, the ECB lowered interest rates by 25 basis points, leaving the deposit facility rate at 2.25%, the main refinancing operations rate at 2.40% and the lending facility rate at 2.65%.

What is the Euribor and how does it affect consumers?

The Euribor, or Euro interbank Offered Rateis the index used as a reference in variable mortgages and other financial products.This value reflects the interest rate at which banks lend money to each other in the interbank market, with terms ranging from one week to one year.

The Euribor at 3 months plays a crucial role, as it is indeed considered an indicator of the health of the interbank marketand is used as a reference in different financial products.

This index is calculated daily by European Central Bank (ECB)and its value becomes a reference for setting the interest rates of many financial products, especially variable rate mortgage loans, and, therefore, directly influences the housing economy.

Therefore, if the Euribor riseslos mortgage loans become more expensive, since banks apply a higher interest rate. On the contrary, if the Euribor falls, mortgages also become cheaper and it can benefit those mortgaged.

How does the euribor affect your mortgage loan?

When we apply for a mortgage,we can choose between three main types:

• Fixed