Euribor 6 months at 2% until the end of the year. See how much your house payments will increase

 Euribor 6 months at 2% until the end of the year.  See how much your house payments will increase

The European Central Bank (ECB) announced its largest-ever hike in key interest rates (75 basis points) on Thursday. As families deal with the rise in food and energy, another tightness is expected for those who have home loans as the rise in interest rates affects Euribor, directly affecting the payment of the house. Analysts polled by Dinheiro Vivo predict that the 6-month Euribor rate (most commonly used for home purchase loans) will reach 2% by the end of the year. If this happens, the mortgage burden can in some cases increase by more than 150 euros.

According to Filipe Garcia, economist and president of the IMF, the market gives “discounts on a Euribor” [a seis meses] close to 2.25%” and it is possible “to get close to 2.5% in eight or nine months and stay at those levels”.

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