Mortgages, while waiting for the ECB, variable rates fall

Nomisma Real Estate Observatory in 2023 48 thousand families will

(Finance) – The meeting of the ECBbut it seems too early for a new rate cut. Last June the Central Bank reduced the indices by 25 basis points and this had a positive, albeit limited, impact on the mortgages variables Italians; according to the simulations of Facile.it the decrease for a financing medium was around 18 euros. “The turnaround made by the ECB with the first cut in June was positive, especially in terms of signal to the market and consumers – explain the experts of Facile.it –. Data in hand, however, the drop in installments was limited and looking at analysts’ forecasts, it will take a while for the Euribor, the reference index for variable rates, to close the gap with the IRS, the reference for fixed mortgages”.

Analyzing the trend of Futures on the Euribor (updated 12/7/2024), Facile.it highlighted how the installment of an average variable mortgage taken out at the beginning of 2022, which reached 733 euros in July 2024, could drop to 670 euros within 12 months, decreasing by approximately 33 euros during the second half of the year and by another 30 euros by June 2025.

The decline in variables is not yet sufficient to significantly impact the supply of banks and fixed rate mortgages continue to be significantly more advantageous: looking at the best offers available online for a standard mortgage from 126,000 euros in 25 years (LTV 70%), fixed rates start from a TAN of 2.81%, that is to say a installment monthly of 585 euros.

Even more advantageous indices for the so-called fixed rate green mortgages (for class A or B properties): in this case the rates start from a TAN rate of 2.64% with a monthly instalment of 574 euros.

Fixed rates this low represent aopportunity even for those who want to try to surrogate the financing; the best surrogation rates start from 2.97% equal to an installment of 596 euros (which drops to 578 euros in the case of green surrogation). Assuming the average variable mortgage taken into consideration, which reached 733 euros in July, a surrogation operation would allow the installment to be lowered by 137 euros per month.

As for the best variable ratesinstead, the offers start from a badger (TAN) equal to 4.46%, with a monthly payment of 690 euros; a value that is lower than in previous months but, as mentioned, still higher if compared to fixed rates.

(Photo: Tierra Mallorca on Unsplash)

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