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Mortgage Market Shift: Euribor's Fall and the Future of Fixed Rates
The drop in Euribor is changing the mortgage market. Refinancing applications are down, and experts suggest waiting for even lower fixed rates.
Spanish
Spain
EconomyEuropean UnionLabour MarketInterest RatesFinanceHousingMortgage
Banco Central Europeo (Bce)IdealistaRn Tu Solución HipotecariaAsufinFuncasBayteca
Christine LagardeRicardo GuliasMarcelo Siqueira
- What is the general consensus on fixed-rate mortgages above 3%?
- A fixed-rate mortgage above 3% is generally not advised, as it locks in a higher rate than the predicted future Euribor rate (between 2% and 3%). This is because it limits potential savings in the future.
- What are the predicted future trends for Euribor and mortgage interest rates?
- Funcas forecasts Euribor to be at 2.35% by the end of next year, while other experts suggest more attractive interest rates may emerge by year's end, with fixed rates potentially below 2% and variable rates near 1% for 3-5 year terms.
- How has the recent decrease in Euribor affected mortgage refinancing applications?
- The decrease in Euribor below 2.5% has significantly reduced the number of mortgage refinancing applications, as borrowers are no longer as eager to switch to fixed-rate mortgages. Experts predict that this trend will continue and that even better conditions will be available in the future.
- What advice should buyers and those refinancing consider in the current housing market?
- While the current market offers opportunities for those looking to buy or refinance, increased demand could push up housing prices. Therefore, it's vital to evaluate the current market conditions thoroughly before taking any major steps.
- What is the current advice regarding switching from variable-rate to fixed-rate mortgages?
- The current consensus among experts is to wait before switching from a variable-rate mortgage to a fixed-rate one. They anticipate that fixed rates will drop even further in the coming years, potentially below 2%, making it a more advantageous time to switch then.