Euribor for three and six months falls to minimums since September and June 2023

With today's changes, Euribor values ​​are very close

The Euribor rate fell today to three, six and 12 months compared to Monday and in the two shortest terms to minimum since, respectively, September and June of last year.

With today's changes, Euribor values ​​remained very close, but the three-month rate, which fell to 3,785%, remained above the six-month rate (3,749%) and the 12-month rate (3,722%). .

The six-month Euribor rate, which became the most used in Portugal in housing loans with variable rates and which was above 4% between September 14th and December 1st, dropped today to 3,749%, minus 0,026 points and one new minimum since June 8th last year, after having risen on October 18th to 4,143%, a maximum since November 2008.

Data from the Bank of Portugal (BdP) for March indicate the six-month Euribor as the most used, representing 36,6% of the stock of loans for permanent home ownership with variable rates. The same data indicates that the 12-month and three-month Euribor represented 34,3% and 24,9%, respectively.

Within 12 months, the Euribor rate, which was above 4% between June 16th and November 29th, fell today to 3,722%, 0,018 points less than in the previous session, against the maximum since November 2008, of 4,228 %, registered on September 29th.

In the same sense, the three-month Euribor fell, being set at 3,785%, minus 0,015 points and a new minimum since September 2023, after having increased on October 19th to 4,002%, a maximum since November 2008.

Market expectations point to a decrease in the European Central Bank's (ECB) reference interest rates at the next monetary policy meeting, on June 6th.

This decline, if materialized, should lead to a moderate decline in Euribor rates and thus lower the provision of housing credit, with analysts anticipating that Euribor rates will reach around 3% at the end of the year.

At the last monetary policy meeting, on April 11, the ECB maintained reference interest rates at the highest level since 2001 for the fifth consecutive time, after having made 10 increases since July 21, 2022.

The Euribor average in April fell across the three maturities, namely 0,037 points to 3,886% for three months (compared to 3,923% in March), 0,056 points for 3,839% for six months (compared to 3,895%) and 0,016 points for 3,702% for 12 months (against 3,718%).

Euribor began to rise more significantly from February 4, 2022, after the ECB admitted that it could raise key interest rates due to the increase in inflation in the euro zone and the trend was reinforced with the start of the invasion of Ukraine by Russia on February 24, 2022.

The three-, six- and 12-month Euribor rates registered all-time lows, respectively, of -0,605% on December 14, 2021, -0,554% and -0,518% on December 20, 2021.

The Euribor are fixed by the average of the rates at which a group of 19 banks in the eurozone are willing to lend money to each other in the interbank market.