Good News for Variable-Rate Mortgage Holders in Spain: Declining Rates Ahead
In a recent announcement, Javier Ruiz, the head of Economy at Cadena Ser, has shared promising news regarding variable-rate mortgages that could significantly impact millions of Spaniards in the coming months. During an appearance on Uppers, Ruiz welcomed viewers to what he termed a 'new cycle of mortgages,' highlighting the beginning of a trend toward decreasing mortgage prices.
Ruiz expressed optimism, stating, 'The decreases are starting. Finally, after everything we have been through and what we have suffered, mortgage prices are beginning to go down.' He indicated that the downward trend is not just a single occurrence, as there are already two interest rate decreases this year, with expectations for at least one more reduction anticipated by October or November.
The expert elaborated that the current rates have dropped to 3.5%, with a promising outlook for continued reduction. 'We are on track for three decreases this year; we have already had two. If we don’t see them this year, we will definitely see them next year,' Ruiz assured. This shift signals a major change for mortgage holders who have endured rising rates in recent years.
Moving forward, Ruiz mentioned that borrowers will no longer have to stress about their rates increasing every six months. 'The anxiety of seeing how much my rate increases is over. It starts to be about how much my rate decreases every six months,' he explained, showcasing the positive effects of this new mortgage cycle.
Ruiz also projected that by the conclusion of this cycle, the Euribor will stabilize around 2.5%, making for a more manageable mortgage rate. He emphasized that a 2.25% rate is deemed 'tolerable' for many borrowers, promising relief after a period of economic strain.
The anticipation of these developments offers a glimmer of hope for many in Spain struggling with variable-rate mortgages. The potential for lower payments and a more stable financial future could greatly enhance the quality of life for thousands, allowing homeowners to breathe a sigh of relief. As the months progress, all eyes will be on these rate changes and the impact they will have across the Spanish economy.
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