The impact of a stronger-than-expected increase in European Central Bank (ECB) key rates has not yet been fully priced in in the interbank market, where Euribor rates are set on a daily basis. Thus, despite the rise in recent days, the rates that underpin home loans have risen again, hitting eight- and 10-year highs. And the rate of ascent continues to be high.
The three-month Euribor, which last entered positive territory on July 14, rose 0.2% this Friday, climbing 0.055 percentage points to hit a new high since September 2014.
Term six months most used rate in Portugal for mortgagesrose another 0.074 percentage points to 0.706%, a new high since August 2012.
It also followed the same trend for 12 months, settling at 1.2%, up 0.058 percentage points and a new high since August 2012.
After about seven years of accumulating a negative value, the Euribor rates reached values in a few months that ultimately have a significant impact on mortgages, new and existing, subject to periodic revisions. The benefit of this movement, albeit on a small scale, is only who has savings.
The desire of the ECB to stop the escalation of inflation, which he led, according to President Christine Lagarde, “to take a broader first step in the process of normalizing interest rates”, opens the door for new successive measures to stop it. And the next decision to raise the key rate of the ECB will take place in September.
Concerns about the termination of Russian gas supplies to a number of European countries and political crisis in Italywhich returns to the elections in September, after the resignation of Mario Draghi, are factors influencing the setting of rates in the interbank market, based on the lending transactions that a wide range of banks are willing to carry out among themselves.
