Euribor rates hit new highs following ECB interest rate hike

Euribor interest rates have reached new highs following a decision by the European Central Bank (ECB) to raise key interest rates by 25 basis points. The six-month Euribor rate, which is the most widely used for variable-rate mortgage loans in Portugal, has hit its highest level since November 2024.

Specifically, the six-month rate rose to approximately 2.806%–2.820%, while the twelve-month rate reached a peak of 3.138%–3.160%, marking its highest point since August 2024. The three-month rate also saw an increase, settling around 2.643%–2.647%.

According to Bank of Portugal data from July, the six-month Euribor accounts for 39.87% of the stock of variable-rate loans for permanent residential housing. The twelve-month and three-month rates represent 31.26% and 24.40% of the stock, respectively. These rising rates are expected to impact mortgage holders, with some monthly payments potentially increasing by as much as 100 euros in October.