Euribor rates rise slightly for February mortgage completions but this was a blip

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After increasing slightly December to January Euribor rates appear to be dropping again.

The 12 month Euribor rate for mortgage completions and annual reviews in Spain rose from 0.55% to 0.57% in February reflecting the rises experienced in December to January. Whilst this move was small it was at the time seen as significant as it was the first increase in Euribor rates for many many months. The trend for February however looks to be yet again a downward one. The daily 12 month Euribor rate has dropped from 0.621 to 0.616 in the last few days. This maybe a reflection of the markets belief that interest rates in Europe will not rise in the foreseeable future or just evidence of the overall confusion and volatility that reigns.

Either way it is highly unlikely we will see large increases in Euribors this year although it can also be argued that it is equally unlikely we will see 12 month Euribors drop by much from their current levels. A period of stability on Euribors will help struggling Spanish Mortgage holders as most mortgagees will experience a drop in overall payments at their 2013 review. In February 2012 the 12 month Euribor stood at 1.83% for completions and reviews in comparison to the 0.57% this year.

The real pressure for householders ( those still in work)  may come in 2014 if Euribors start to climb again.

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