The increase in Euribor rates is hitting new home loan contracts in force. In contracts signed in the last three months, the interest rate rose from 2.715% in December to 3.307% in January, announced this Friday the National Statistics Institute (INE). That’s another 59.2 basis points or 0.592 percentage points.
For the calculation of this rate, contracts signed between October and December 2022 were considered, and communicated to INE in Januaryexcluding loans made in the first month of the year.
In these most recent contracts, the average value of the installment rose by 23 euros, to 559 euros, and the average amount owed was 126,805 euros, 3,397 euros less than in December 2022. This slight drop could be explained by the greater difficulty in accessing credit by households, explained by the rise in rates and an increase in spreadsbank margin added to the reference rate.
But the increase in Euribor is also being reflected in all contracts, as they are being revised. For the entire universe of loans, the implicit interest rate rose to 2.217% in January, 31.9 basis points more than in the previous month, to a maximum since June 2012.
For this last universe of contracts, the average capital outstanding increased by 353 euros, to 62,357 euros, and the average installment stood at 308 euros in January 2023, translating an increase of nine euros compared to the previous month and 54 euros (21 .3%) compared to January 2022. Of this amount, 115 euros (37%) correspond to interest payments and 193 euros (63%) to amortized capital.
Mortgage loan costs will continue to rise, taking into account the upward trend in Euribor rates.
In this Friday’s session, the three terms used in housing loans rose to 14-year highs. The 12-month Euribor stood at 3.572%, the six-month Euribor at 3.212%. The three-month Euribor fell slightly to 2.667%.
The Government announced yesterday a subsidy on part of the interest on loans of up to 200,000 euros and whose family income is up to 38,632 euros, but the contours of the measure are not yet clear.