Euribor rates rise toward 3%, increasing mortgage costs

Euribor rates have trended upward through August, with the 12-month benchmark reaching 2.956%. This increase affects variable-rate mortgage holders across the Eurozone, particularly in Spain and Portugal.

For an average mortgage of 150,000 euros over 25 years, experts estimate that an annual review could increase monthly payments by approximately 68 euros, totaling over 800 euros in additional annual costs. Semiannual reviews may result in monthly increments of around 59 euros.

The rise is attributed to inflationary pressures, including surging fuel prices linked to ongoing geopolitical tensions in the Middle East. Market analysts anticipate potential interest rate hikes by the European Central Bank (ECB) in September and December to address these economic conditions.