Bank of Spain: 12-Month EURIBOR Falls to 2.691% in October
Madrid, November 4, 2024 – The Bank of Spain has reported that the 12-month EURIBOR (Euro Interbank Offered Rate), the official reference rate used for mortgage lending in the eurozone, has fallen to 2.691% in October. This represents a decrease of 0.102 percentage points from the previous month.
The EURIBOR has been on a steady downward trend since July, when it reached a peak of 2.943%. The decline in the EURIBOR is largely attributed to the European Central Bank’s (ECB) monetary policy actions, which have aimed to bring inflation under control.
The ECB has been raising interest rates since July in an effort to combat soaring inflation in the eurozone. The ECB has also announced plans to reduce its bond holdings, known as quantitative tightening, which is expected to further tighten monetary conditions.
The decline in the EURIBOR is welcome news for mortgage holders, as it will lead to lower monthly payments. However, it is important to note that the EURIBOR is still well above the historical average, and mortgage rates are likely to remain elevated in the near term.
The following table shows the evolution of the 12-month EURIBOR in recent months:
| Month | EURIBOR | Change | |—|—|—| | January 2023 | 0.528% | – | | February 2023 | 0.864% | 0.336% | | March 2023 | 1.328% | 0.464% | | April 2023 | 1.783% | 0.455% | | May 2023 | 2.220% | 0.437% | | June 2023 | 2.793% | 0.573% | | July 2023 | 2.943% | 0.150% | | August 2023 | 2.876% | -0.067% | | September 2023 | 2.793% | -0.083% | | October 2023 | 2.691% | -0.102% |
The Bank of Spain’s data is based on the daily EURIBOR fixings published by the European Banking Federation. The EURIBOR is calculated as the average of the interest rates offered by a panel of banks for unsecured interbank borrowing.
The 12-month EURIBOR (official mortgage market reference rate) falls to 2.691% in October
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