House payments will fall again in August, with the biggest drop occurring in contracts indexed to the 12-month Euribor, according to a simulation by Deco/Dinheiro&Direitos.
According to Deco/Dinheiro&Direitos’ simulations for Lusa, a client with a 30-year loan of 150,000 euros, indexed to the 12-month Euribor and with a spread (the bank’s profit margin) of 1%, will pay 762.35 euros, a reduction of 56.6 euros compared to August 2023.
With regard to loans indexed to the six-month Euribor, the house payment – for the same conditions – drops to 772.92 euros, 22.4 euros less than in February.
Finally, in the case of contracts indexed to the three-month Euribor, the August installment of 776.6 euros represents a drop of 18.12 euros compared to May.
These figures were calculated based on the average Euribor rate in July of 3.644% for six months, 3.685% for three months and 3.526% for 12 months.
The average Euribor considered for the purposes of reviewing a variable rate loan is that of the month before the credit agreement was signed.
Since the beginning of the year, people with mortgages have seen their monthly payments fall as the contract date is renewed.
The Euribor began to fall in anticipation of the expectation that the European Central Bank (ECB) would begin cutting its key interest rates in June, which came to pass on June 6, when it cut the three key interest rates by 25 basis points.
At the last monetary policy meeting on July 18, the ECB decided to maintain interest rates.
As a result, the rate on the main refinancing operations remains at 4.25%, the rate on the marginal lending facility remains at 4.50% and the rate on the deposit facility at 3.75%.
