Will it stay below 4.2% in the coming months? “The Euribor is resisting exceeding the 4.2% barrier more than expected. It has now been at 4% for five months and the accumulated growth does not exceed two tenths. This is one good news because, if we look back just a few months, we see that those two tenths were easy to overcome from one month to the next and that now it does not show that it is stabilizing and that the peak, if the European Central Bank allows it, it could be close,” says Simone Colombelli, Mortgage Director of the mortgage comparator iAhorro.

In fact, On October 26, the organization led by Christine Lagarde paralyzed the rate hike, leaving them at 4.5%. However, it must be taken into account that the ECB will meet again on December 14. “We will have to be aware of if it raises rates again another 0.25 points or waits until 2024 to continue with the increases, because it is clear that there will be more,” explains Colombelli.

And why are more rate hikes expected during 2024? What the ECB seeks with these measures is reduce the inflation in eurozone countries below 2%. At this time, the European CPI figure is at 4.3%, although some of the countries in the euro zone (Greece, Norway and Belgium, among others) are already at optimal levels. However, other places such as Germany, Croatia and Hungary are far from that figure.

In the case of Spain, the advance data of October CPI (according to the National Institute of Statistics) stands at 3.5%, remaining at the same level as in the month of September. This is due to the drop in fuel prices and the fact that food and energy drinks have not increased their prices as intensely as in previous months.

How does this Euribor data affect the mortgage market?

We must remember an important point: it is the last quarter of the year. Looking to the end of the year banks want to close with the best possible figurebut they don’t want to do it with just any type of profile: they look for specific people who can give them solvency and security.

“Increasingly we see the offer more segmented, we receive powerful proposals, but only for certain profilesfor more ‘premium’ clients with whom the bank does not deal no risk of non-paymentat least at first,” says Colombelli.

And what is the reason for this happening? “In times of crisis, banks are more rigid and selective to protect themselves from possible non-payments,” adds the spokesperson for iAhorro, citing as one of the main reasons that “also in these situations the price of the living place tends downward. It is true that, at the moment, prices remain high, but they will begin to fall soon and, in the event of non-payment by the mortgaged party, the first guarantee that the bank has is the home being mortgaged: if its value drops, it is possible that guarantee does not cover the debt that the client has with the entity.”

For this reason, “there are clients who receive good conditions in some banks and not in others; Each bank has preferences for one type of client or another and, in order to find the best offer, at times like this the importance of comparing the offers of different banking entities increases,” concludes Simone Colombelli, Mortgage Director of the mortgage comparator iAhorro.