After closing 2017 with a new historical low, the Euribor will continue negative this year after more than 20 consecutive months with this trend. Moreover, according to a survey conducted by Bloomberg on the evolution of the Euribor, among investment banks, it is not foreseen that it will enter positive until, at least, 2019 (in which ...

Euribor will continue negative in 2018

Euribor will continue negative in 2018

After closing 2017 with a new historical low, the Euribor will continue negative this year after more than 20 consecutive months with this trend.

Moreover, according to a survey conducted by Bloomberg on the evolution of the Euribor, among investment banks, it is not foreseen that it enters positive until, at least, 2019 (in which they estimate that it will be at 0% in the fourth quarter).

This downward behavior is due to monetary policies carried out by central banks in order to revive the economy, but the question that arises now is how long will this context be maintained. In principle the forecast is that the Euribor will continue with negative values ​​during this year .

According to the ECB (European Central Bank), it will not be until 2020 when inflation approaches the 2%, the objective of all central banks, and expects that 1.7% will be reached by then.

The AHE (Spanish Mortgage Association) believes that " According to the behavior of inflation and of the economy in the Eurozone, it is to be expected that the monetary policy promoted by the ECB will reverse the downward trend in rates in the near future and with that start a smooth escalation ".

Regarding mortgages, banks in Spain have reduced the rates on mortgages at a fixed rate in order to sell more this type of loan and those who are paying a variable rate mortgage, have the peace of mind that no abrupt changes are expected in the short term.

However, the evolution of the Euribor also affected a to the profitability of bank deposits. Currently, performance remains stuck at historical lows.

RELATED NEWS

The Euribor closes 2017 with a new historical minimum

The Community of Madrid has announc...
The Community of Madrid has announced important tax reductions

The Madrid government recently announced a reduction of income tax and other taxes The Government will lower the IRPF of Madrid from 19% to 18.5% and in the case of low incomes the decrease will be more noticeable: the minimum rate will be at 9%, with what will be the lowest in the whole country. As well …...

Andalusia approves a new Regulation...
Andalusia approves a new Regulation Code for the real estate sector

The Junta de Andalucía and the Andalusian Consumer Council, with the participation of the Directorate General of Consumer Affairs, presented last January the ANDALUSIAN CODE OF REAL ESTATE QUALITY (CACI). This Andalusian Code arises from the need to protect the lawful interests and safety of consumers and users of real estate services ......

The prices of the rents diminish th...
Real estate news, youth rental price

The interest in renting a home for young people has fallen drastically since last year. Among young people aged 18 to 34 there is a decrease of 9 points that goes up to 14 when we talk about young people from 18 to 24. The rise in rental prices is the main problem that makes ......

Social networks for real estate: Or...
Social networks for real estate: Organization of work

A good organization is the key to success. Creating only social profiles is not enough for a Social Media plan. In order for our effort in social networks to be fruitful, we must organize our work based on the objectives we seek and from that we will decide with which social networks to work and what ......