At the end of the month, the Euribor for January is expected to close at 1.84%, 16 hundredths less than its value in December when it was 2.00%, which is the biggest drop since July 2009. In contrast, the indicator used in Spain for calculating mortgages has risen 29 / 100 compared to the same month last year, so mortgages loans to the person on the ground will also increase accordingly.
In 2011, the Euribor in January closed at 1.55%, 29 / 100 below the level that it will close at the end of this month. This means that a mortgage of € 200,000 over 24 years will increase by 4% or 32 Euros extra per month or 384 Euros per year. In the case that the same mortgage is over 39 years, the increase will be 6% or 36 Euros per month or 420 Euros per year.
During the month of January 2012, the Euribor started at 1.937% and continued to fall on a daily basis, which marks the lowest interest rates by the European Central Bank (ECB) by a quarter percentage point to 1 25%. Obviously the Euribor will continue to fluctuate as it is directly linked to the currency market concerns on whether the price of money will increase or decrease.