Friday, September 29, 2023

Tecnotramit warns of a possible slowdown in the rise of the Euribor to avoid a recession horizon

After twenty consecutive months of rising Euribor, Interest rates fell to 4.07% in August, a level that has not been reached since Tecnotramite that’s what they warn “Can be maintained at this level”as banking supervision and counterweight European policy are unable to stabilize inflation.

Accordingly Carles Solé Cases, Mortgage Formalization Coordinator at TecnotramitCooling the economy to control inflation comes at a cost that impacts the gross domestic product (GDP) of several European countries. This is also the case in Germany, where they are affected to the point of self-discovery “Against the feared horizon of a possible recession.”

«The The slowdown in the rise of the Euribor, which has a seasonal effect in the summer months and especially in August, is not so noticeable in the economies with a strong weight of the tourism sector, but it is in the economies where there is a slowdown The case in every respect. Indices, including the Euribor, show hardly any fluctuations«, notes Solé Cases.

Although central banks’ main priority is to control inflation, they have not yet achieved this. According to Tecnotramite: “In some countries these impacts are being felt, but there are very strong economies around us that are still at around 6%, very far from the 2% set by the European Central Bank (ECB).«.

This leads to a Eurozone in which many countries maintain an upward trend of more than 5%, although the price increase is slowing slightly. In response to this situation, ECB President Christine Lagarde warned that there could be new interest rate increases.

In this way, the evolution of Euribor will continue to have a direct impact on lending and the adjustment of installments of variable rate mortgages. In contrast, Solé highlights the possibilities of fixed tariffs.

“We have had a spectacular year of property transfers post-COVID-19, which has resulted in some savings and left people wanting to make changes to their properties.” Now, however, the interest rate is putting a stop to that notion Fixed-rate mortgages are still quite attractive compared to ten or fifteen years ago«, says Solé.

According to the manager of Tecnotramit, this context offers a new opportunity, especially for buyers with their own resources and funds and especially for foreign investors who participate in purchases and sales operations in Spain without relying on external financing.

The rise in Euribor, caused by the European Central Bank’s (ECB) monetary policy to control inflation, is decreasing for the first time after twenty months of continuous increases

Although the primary goal of central banks is to control inflation, this goal has not yet been achieved. According to Carles Solé, real estate manager at Tecnotramit, “there are very strong economies, still at around 6%, very far from the 2% set by the European Central Bank (ECB).”

Nation World News Desk
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