Variable rate down!

While waiting for a new monetary easing by the ECB, which always follows the American market led by the Federal Reserve, we can expect a short-term drop in the variable rate, which can finally follow the trend of the fixed rate.

All the spring forecasts have been confirmed in the July data. Finally, even those who chose the variable rate in previous years and did not take advantage of the 2023 time window, which by law provided for the transition to the free fixed rate, will see their mortgage payment drop.

Last month, the Euribor index (the benchmark for the construction of variable-rate mortgages ) fell both in the 1-month and 3-month maturities. In the first case, it stood at 3.62%, one basis point less than June but a full 20 compared to May. In the second case, it stood at 3.68%, from 3.72% in June and 3.81% two months earlier. The IRS (the benchmark for fixed-rate mortgages), which was the first to start falling during the last quarter of 2023, has been in a phase of adjustment for a few months, with the 10- and 20-year maturities standing at 2.75% in July and the 30-year maturities at 2.51%.

As for the type of rate requested, however, the incidence of the fixed rate continues to grow, reaching 99.5% in July, relegating all other options to negligible shares. After all, if you pay less by fixing the installments once and for all, it seems difficult to imagine that anyone could take the risk of an increase in the monthly amount to be paid.

Instead, there are no particular changes regarding the average duration of the requested loans, which stands at 24 years and 2 months. The same goes for those granted, at 24 years and 5 months. The August data will be crucial to understand whether the market is already positioning itself in view of a new cut in official rates by the ECB, expected, by many analysts, for the month of September.

To choose the best, trust me, with a free consultation you will discover in advance the best conditions of home mortgage (or other financing: business, personal loan, salary-secured loan) on the market.

Contact me