The European Central Bank (ECB) has continued to lower official rates to counteract the possible economic consequences of Donald Trump's tariff policy. The ECB lowered interest rates by 25 basis points in June, and it is difficult to predict whether it will continue to lower them for the remainder of 2025. What experts are fairly certain about is that rates will not rise.
The mortgage sector affected by this situation is seeing the Euribor continue to fall, dropping to 2.07% in May. This scenario of tariff uncertainty means that banks are still reluctant to impose the fixed mortgage interest rates set by the Euribor, at around 2%, but by the end of the year, if the trend continues, fixed-rate mortgages of between 1.60% and 1.50% may be available. This will act as a compensatory mechanism for the progressive rise in house prices.
Experts insist that the very strong demand for housing and lower interest rates will cause the number of mortgages registered to reach historic highs in 2025.
Source: Inmonews
by Editorial - 13/06/2025