Business · Markets · 5 hrs ago
Euribor eases slightly, but mortgage costs are set to rise
The 12-month Euribor stood at 3.21% midway through October, slightly below its September high of 3.24%.
Euribor is a benchmark that helps set the cost of variable-rate mortgages in Spain, and it has risen for three months in a row.
The European Central Bank has signalled that a moderate interest-rate increase may help bring down inflation, and markets expect a 0.25 percentage-point rise as soon as its October 29 meeting or by December.
Even if Euribor dips, annual mortgage reviews will mean higher payments because the rate was 2.18% a year earlier.
For a typical €150,000 mortgage over 25 years, the monthly payment would rise by about €84 to around €810 after an annual review.
Banks are also raising rates on new mortgages, and the average cost of new loans reached 3.01% in July, its first time above 3% in a year and a half.
Analysts expect Euribor to ease over the coming months, but forecasts differ on how far it will fall.
The provisional monthly average for the 12-month Euribor stood at 3.21% halfway through October, slightly below September’s 3.24% close.
Despite the slight easing, an average variable mortgage with annual reviews is expected to cost about €84 more per month after repricing.
The Euribor’s daily rate also closed at 3.21%, below the month’s high of 3.32%.
Markets expect the European Central Bank to raise interest rates by 25 basis points, possibly at its meeting on October 29 or in December.
Banks are also raising prices on new mortgages, with the average rate on new loans reaching 3.01% in July.
- Who
- Borrowers with variable-rate mortgages and people taking out new mortgages.
- What
- Euribor has eased slightly, but mortgage repayments and the cost of new mortgages are rising.
- When
- The report was published on October 16, 2026; the monthly Euribor average was measured halfway through October.
- Where
- Not stated
- Why
- Euribor remains above its level a year earlier, pushing up repayments at mortgage reviews; banks are also raising rates on new loans.
This story does not have two clearly opposing sides.
The Euribor closed at 2.18%.
The average rate on new mortgages was 2.96%.
The average rate on new mortgages rose to 3.01%, its first time above 3% in a year and a half.
The provisional monthly Euribor average was 3.21%, below September’s 3.24% close.
- Provisional monthly Euribor
- 3.21% halfway through October
- September Euribor close
- 3.24%
- Annual-review mortgage example
- €150,000 over 25 years; monthly cost expected to rise by about €84 to around €810
- Six-month-review mortgage example
- Monthly cost expected to rise by about €38
- New mortgage rate
- 3.01% in July, up from 2.96% in June