One more day the Euribor remains below the official rate of the European Central Bank (ECB). Today it closed at 3.395% below the 3.5% that the ECB established last week as the interest rate by raising the index by 0.5 points.
It is an indicator that the banks are not 100% confident that the upward trend in rates will continue, but that they are betting that they will not carry further increases, at least in the short term. The Euribor -in addition to being used to calculate mortgage payments- is the average interest at which banks lend money to each other. When the current rise in official rates began, the Euribor rebounded rapidly, standing above the official rate. That trend was broken last week dragged by the financial storm unleashed by the problems of two small US banks and the European Credit Suisse. Investors believe that the Euribor will pick up again when the dust settles.
Today it is actually up a few tenths from 3.380% on Friday to 3.395% today.
To calculate the mortgage payments, what is actually used is the average of the Euribor for the month of March. With the inertia of the strong increases in the first part of the month, this monthly indicator is above the month of February. In any case, mortgage loan installments are renewed in relation to the indicator from a year ago when it was in negative territory. In fact, it is expected that during the next 12 months all the loans that are subject to review will be renewed upwards.
The stabilization of the Euribor below the money price level occurs when the Ibex manages to rise, even slightly, around mid-morning today after the early falls. Those who do not get rid of the red numbers are the banking values ??that are in losses for one more session.
The rest of the European stock markets have also reversed the falls of the first hour of the morning with growth of 0.9% on the Paris Stock Exchange, 0.7% in Frankfurt, 0.62% in Milan and 0.49 % in London.
