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[BUSINESS] · Spain, Portugal, Finland, Greece, Italy · 13 sources

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Euribor rates rise as 12-month index surpasses 3%

The Euribor index, a key benchmark for variable-rate mortgages in the Eurozone, has seen a significant upward trend. On August 21, 2026, the 12-month Euribor rate surpassed the 3% threshold, reaching 3.003%. This marks the first time the rate has exceeded this level since September 2024. Other rates also rose, with the 6-month Euribor at 2.765% and the 3-month Euribor at 2.524%.

The provisional average for August 2026 is estimated at 2.940%. This upward pressure is attributed to geopolitical uncertainties in the Middle East, which have driven oil prices above 90 dollars per barrel, and persistent inflation, which stood at 2.9% in the Eurozone for July. While negotiated wages in the Eurozone grew by 2.44% in the second quarter of 2026—a slight deceleration from the previous quarter—inflationary concerns remain.

Market analysts suggest that the Euribor is anticipating a potential tightening of monetary policy by the European Central Bank (ECB). Although the ECB maintained its key interest rates in July, markets are pricing in possible future moves. For households with variable-rate mortgages, these increases translate into higher monthly payments, with some estimates suggesting monthly increases of approximately 58 to 85 euros depending on loan terms and amounts.

Entities

Banco de Portugal · Bank of Portugal · Euribor · European Central Bank · Eurozone · Nordea

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