Euribor falls to 2.7% in July 2026, easing variable mortgage payments

The Euribor 12‑month interbank rate closed July 1 2026 at 2.727 %, marking its fourth consecutive decline and the lowest level since March. The drop offers relief of up to €80 per month for borrowers with variable‑rate mortgages whose last reference rate was higher, such as the June 2026 level around 3.5 %.

Conversely, borrowers whose next review uses the unusually low July 2025 reference (2.079 %) may see their payments rise by about €60, because the differential now adds roughly 0.6 percentage points. Banks are keeping mortgage conditions unchanged, with many offering variable products tied to Euribor + 0.5‑0.65 % and requiring salary domiciliation and insurance.

The rate is expected to remain between 2.6 % and 2.9 % until the European Central Bank meeting on 23 July. Further movement will depend on ECB policy decisions and external factors such as heightened geopolitical tension between the United States and Iran, which could affect financing costs.