EUROZONE interest rates have fallen again, ending February on -0.191% and reducing the average Spanish mortgage by €54 a year.
Experts believe the rate, known as the Euribor, will remain below zero for the whole of 2018.
A slight rise in January, to -0.189%, proved temporary and the rate is once again at an historic low.
Based upon a 20-year mortgage of €120,000 on a 'Euribor +1%' contract – the average type of home loan in Spain - this means an annual saving of €54.12, or €4.51 a month.
The Euribor went into minus figures in February 2016 for the first time in history in an attempt to help the Eurozone recover from the ongoing recession, and has not gone above 0% since then.
Analyst Joaquín Robles from XTB says until the Eurozone reaches its inflation objective of 2%, there is no chance the Euribor will rise.
“In September, the Central European Bank (BCE) will decide again whether or not to continue with its current debt-buying programme or whether prolong it in line with the evolution of inflation,” Robles explains.
“However, the current long-term previsions lead us to believe we will not see an increase in interest ratest until at least the middle of 2019, so we expect the Euribor to continue below zero for the whole of 2018.”
But Robles warns savers should not allow themselves to become confused by this situation, since the current length of a mortgage loan is typically 25 years, and the current price of money could well increase during this time.
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