Euribor reaches 4.1% but with signs of slowing down

Comments: Open Tuesday 1st May @ 9:50pm

Now that we’ve reached the end of February, we can start to calculate the average of the main mortgage reference index, the Euribor, which is taken to fix the increase of our monthly mortgage repayments.

Euribor has steadily increased to reach nearly 4.1% (remember that until the month end, the exact figure will not be released) and is now at the same level it was back in August 2001 and will show an increase of 0.036 points on the January figure and a yearly rise to date of 1.186 points.

Looking at these figures, is has shown an average increase of 0.1 point per month during 2006. However, it does now seem as though things are slowing down in 2007 with the monthly increases not being more than 0.05 points.

Taking into account the new increase in interest rates announced by the BCE (European Central Bank) which will put the rate at 3.75% for March and which could rise further to 4% in June, it is quite probable that 2007 will see a slowing down of the Euribor rates which will settle at around 4.5%.

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