October 7, 2022

Spain’s Euribor reaches highest level since 2009

Madrid (EFE).- The 12-month Euribor, the most widely used indicator in Spain to calculate mortgages, reached a daily rate of 2.5% on Friday, the highest level since January 2009, in a week marked by the avalanche of interest rate hikes by central banks.

According to Bloomberg data consulted by Efe, the Euribor has risen sharply this week, at 2.263% since last Friday and 2.5% today.

In this way, and with a few sessions to go until the end of the month, the preliminary average rate for September reaches 2.1%, the highest since 2011.

Residential buildings in Bilbao.
Residential buildings in Bilbao. EFE/Luis Weave/File

The Euribor rises sharply at the end of a week dominated by central banks. On Wednesday, the US Federal Reserve (Fed) announced another 75 basis point rate hike, confirming that they will remain high for a long time to come.

Similarly, other banks, such as Switzerland or England, have followed in the footsteps of the Fed and increased the price of money.

The new increase in the Euribor will lead to an increase in mortgage costs, which could rise by around EUR 180 per month or more than EUR 2,100 per year.

And it is that a year ago, in September 2021, the Euribor closed negative at -0.492%.

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