The Euribor hits 26-month lows: a breather for homeowners with mortgages in Spain
The Euribor, the benchmark index for most variable mortgages in Spain, closed November 2024 with an average of 2.506%, marking its lowest level since September 2022. This decrease is a relief for thousands of families with variable mortgages, who will see their monthly payments reduced significantly.
The recent evolution of the Euribor
Since the beginning of 2024, the Euribor has shown a steady downward trend, accumulating eight consecutive months of declines. Their values in recent months are detailed below:
- May 2024: 3,680%
- June 2024: 3,650%
- September 2024: 2,936%
- October 2024: 2,691%
- November 2024: 2,506%
This behavior reflects the decisions of the European Central Bank (ECB) to reduce interest rates, seeking to stimulate the economy in a context of controlled inflation.
Impact on variable mortgages
The decrease in the Euribor translates into a notable reduction in mortgage payments. According to expert calculations, those who review their mortgage this month, based on the Euribor of November, will enjoy an average annual saving of 1,500 euros. For example:
- For a mortgage of 150,000 euros over 25 years, with a differential of 1%, the monthly payment could fall by about 127 euros.
- In mortgages of 300,000 euros, the annual savings could exceed 3,000 euros.
These figures are excellent news for mortgage holders, especially after the prolonged period of Euribor hikes in 2022 and 2023.
Outlook for 2025
Analysts predict that the Euribor will continue its downward trend during 2025, with estimates pointing to an average of 2.5% by the end of next year. According to the Funcas Panel and studies by entities such as CaixaBank Research, the index could stabilize between 2.1% and 2.5%, provided that the ECB continues to reduce interest rates.
In the long term, the Euribor is expected to reach what experts call the "neutral level", between 2% and 2.5%, although forecasts indicate that it could rebound slightly in 2026.
Opportunities for Mortgage Holders: What to Do Now?
The drop in the Euribor offers a favourable scenario for holders of variable mortgages to consider the following options:
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Switch to Fixed Rate
Until December 31, 2024, mortgagees can change their variable-rate loan to a fixed-rate loan without paying fees, thanks to a special government measure. This is especially recommended for those looking for long-term stability. -
Renegotiate conditions
It is a good time to review the current conditions of the mortgage. A novation (change of conditions with the same bank) or a subrogation (transfer to another entity) may offer better terms. -
Professional advice
Having the support of financial experts will help identify the best strategy according to personal needs and the market context.
A key moment to make financial decisions
The Euribor at 26-month lows represents an excellent opportunity for mortgage holders, both to reduce expenses and to plan for the long term. Whether it's through a change to a fixed rate, the renegotiation of conditions or simply taking advantage of the reduction in installments, this is an ideal time to act.
The Euribor, or Euro Interbank Offered Rate, is the interest rate at which European banks lend money to each other. Since its creation in 1999, it has been a key indicator for variable-rate mortgages in Spain. Below is an analysis of its evolution from 2000 to November 2024.

Evolution of the Euribor (2000-2024)
Over the last two decades, the Euribor has experienced significant fluctuations:
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2000-2008: The Euribor peaked in July 2008, standing at 5.393%, driven by the real estate bubble and the global financial crisis.
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2009-2016: After the crisis, the index declined, reaching negative values in 2016 due to the expansionary monetary policies of the European Central Bank (ECB).
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2017-2021: It remained in negative territory, with a historical average of -0.189% in 2021.
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2022-2024: In 2022, the Euribor began to rise, reaching 3.018% in December. However, in November 2024, it fell to 2.506%, its lowest level since September 2022.
Impact on mortgages
The variation in the Euribor directly affects the payments of variable mortgages. For example, a 25-year mortgage of €150,000 with a differential of 1% over the Euribor would experience a reduction of approximately €127 per month when comparing the value of November 2024 with that of the previous year.
Factors influencing the Euribor
The ECB's policies, inflation and economic growth in the euro area are decisive in the evolution of the Euribor. Recently, the stabilisation of inflation and the ECB's interest rate cuts have contributed to its decline.
Future prospects
Analysts predict that the Euribor could stabilize around 2.35% in 2025, benefiting mortgagees with lower payments. However, factors such as economic developments and the ECB's decisions will be decisive in its future behaviour.
Conclusion
The Euribor has shown a downward trend in recent months, offering relief to mortgage holders. However, it is essential to stay informed about their evolution and the economic policies that may influence their behaviour.



































































































































































































