Mortgages: Slowly declining variables continue while waiting for the ECB

Even if it’s slow, it will continue The cost of variable rate mortgages has slowly fallen. This was thanks to the ECB’s change of direction, which reduced the index by 25 basis points last June, which had a positive but limited impact on Italian variable mortgages (around €18).

The data collected and analyzed prove this Convenience Network By observing Euribor futures (updated to July 12, 2024), it is highlighted that the average variable mortgage instalment subscribed at the beginning of 2022 (reaching €733 in July 2024) could fall to €670 within 12 months, decreasing by about €33 in the second half of the year and by another €30 by June 2025.

“The ECB’s reversal of its first rate cut in June is positive, especially in terms of the signal it sends to markets and consumers,” Experts at Facile.it explain, Market forecasts focus on Frankfurt Institute’s meeting today I have nothing. “However, judging from the existing data, the decline in installment payments is limited, and according to analysts’ forecasts, it will take a long time for the floating interest rate reference index Euribor to narrow the gap with the floating interest rate reference index IRS.“.

Price offered

The experts at Facile.it continue that the decline in variables has not yet had a significant impact on the banks’ offers, Fixed-rate mortgages continue to gain ground: Check out the best online offers for a 25-year €126,000 standard mortgage (LTV 70%) with fixed rates starting from a TAN of 2.81%, which translates to a monthly instalment of €585.

For the so-called more favorable index Fixed rate green mortgage (For properties of category A or B): In this case, the rates start from a TAN rate of 2.64% with a monthly instalment of €574.

Such low fixed rates also offer an opportunity for those who want to try alternative loans. The best subrogation rates start at 2.97%, which is equivalent to an instalment of €596 (reduced to €578 in the case of green subrogation). Assuming that the average variable mortgage examined in July amounted to €733, the subrogation operation would reduce the monthly instalment by €137.

As for Best variable rates, On the contrary, the preferential interest rate (TAN) starts at 4.46% with a monthly instalment of 690 euros; a decrease in value compared to previous months, but as mentioned above, still high compared to landlines.

How does the variable amortization of the average mortgage change based on the Euribor futures forecasts (updated to July 12, 2024)?

moon televisionAssociation (TAN) Monthly installment This is down from July 2024.
December 2024 4,50% 700 EUR – 33 EUR
June 2025 4,08% 671 EUR – 62 EUR

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