Euribor rises to multi-year highs, increasing mortgage costs

The Euribor, the benchmark index for variable-rate mortgages, has seen a significant rise, reaching a monthly average of 2.95% in August. This marks the highest level in two years and follows two consecutive months of increases. In early September, the index has continued its upward trend, with provisional data showing a September average of 3.049%.

This escalation is driven by factors including geopolitical tensions in the Middle East, which have impacted oil prices and pressured European inflation. In Spain, inflation reached 4.3% in August, the highest since 2023, potentially influencing future decisions by the European Central Bank.

The rising rates directly impact households with variable-rate mortgages, as monthly payments increase. Compared to September of the previous year, when the index stood at approximately 2.17%, the current levels represent a substantial increase that will affect loan revisions for many borrowers.