Grupo Vapf

The mortgage reference rate increases again in June

The Euribor interest rate, which is used as reference for most mortgages in Spain, ended the month of June 2010 at 1.281%, which make these three consecutive months on the rise and marks its highest value since August 2009 when it stood at 1.334%. Analysts say it will continue to increase its value slightly.

The reason for predicting the increase of the Euribor rate is the uncertainty in the interbank market, which has not improved even after the European Central Bank guaranteed liquidity or the Spanish Treasury auctions closed successfully.

The indicator continues reflecting distrust of the Spanish economy and, although a change in trend is not in view, it should not return to the path of continuing declines that occurred during 2009. Even so, mortgages underwritten a year ago due to be revised in June with still see their monthly repayments reduced in about 25 euros a month, nearly 300 per year.