The EURIBOR will end its upward trend and start stabilising during 2024. As first declared by Tecnotramit, considering this value increase will slow down during 2023.
‘In the last year there has been a strong increase in the EURIBOR that has made the German Federal Reserve react, first, and then, quite forcefully, the European Central Bank, which, after raising rates by half a point last month, is planning a new revision during September’, explains Carles Solé, Tecnotramit’s Mortgage Loan Manager.
The expert points out: ‘Everything suggests this increase will slow down and during 2023, although continuing on an upward trend, will do so at lower rates, and then, in 2024, stabilise at around 2%, according to forecasts’. This situation, both in the EURIBOR and in the monetary policy arena, will lead to a rise in mortgages in line with rates.
A great time to bet on fixed rates
In this economic context, and if inflation is controlled at around 2%, Tecnotramit assures it is still ‘very interesting’ for consumers to negotiate a fixed rate mortgage with their financial institution.
‘Not so much because the rate itself is very low -obviously it will no longer be the same as those taken out during 2020 or 2021, which were really very attractive,- but because of the existence of competition, also known as commercial war, between institutions which, in addition to promoting a more interesting initial offer to attract new clients, may even see the agreed interest rate reduced if certain products are contracted through the institution too’, explains Solé.
Given this new phenomenon, there has been an increase in the offer of bonuses that correspond to the marketing of different products that reduce mortgage loan rates by up to one point below what was initially agreed. The need to expand business and the search for customer loyalty means institutions are not looking for the extreme profitability on the loan itself, but for a ‘multi-product’ customer.
‘In short, if rates do not increase more than 2% and bonuses are achieved, I still recommend contracting fixed rates that are properly negotiated with each institution. You should always compare each of the offers and individually negotiate with each institution, since commercial interest is on the table beyond interest rates themselves,’ concludes the company’s Mortgage Loan Manager.