Euribor stabilizes in October amid shifting mortgage trends

The Euribor, which determines the cost of most variable-rate mortgages, showed signs of stabilization in mid-October. The 12-month average stood at approximately 3.21%, a slight decrease from the 3.24% recorded at the end of September. This minor decline follows a period of volatility driven by European Central Bank (ECB) interest rate decisions.

Despite the slight monthly dip, mortgage holders face higher costs compared to the previous year, as the Euribor was at 2.18% in October of the prior year. For a typical 150,000 euro mortgage over 25 years with a 1% differential, monthly payments could reach approximately 810 euros.

In the broader mortgage market, there is a growing trend toward fixed-rate products. Data indicates that 62.3% of new mortgages signed in July were fixed-rate, while variable-rate options accounted for 37.7%, with pure variable mortgages representing less than 10%. While fixed-rate offers are becoming more expensive, they remain a popular alternative to variable rates, which are increasingly sensitive to ECB policy shifts.