The year 2024 has ended with a very different evolution than what was observed during 2023 regarding the value of money and its impact on mortgages.
The Euribor, reference for the vast majority of mortgage loans in Spain, recorded in November its largest decrease in the last 15 years and the European Central Bank (ECB) is expected to carry out more interest rate cuts in 2025.
In recent weeks, the Euribor stood at 2.38%, far from the 4% it marked at the end of 2023. Thus, mortgages are becoming less expensive for citizens.
Specifically, for an average variable mortgage of 150,000 euros over 25 years, it represents a saving of more than 100 euros per month, which in a year amounts to more than 1,200 euros.
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After four cuts in interest rates during the past year, experts predict that the ECB will continue to lower the price of money, which could significantly increase the number of home sales.
However, not all news is good for potential buyers, given that despite mortgage loans continuing to decline, the price of houses continues to increase.
The prices of homes for sale in the Canary Islands are 6.6% more expensive than a year ago, and in some locations such as Arrecife, prices have risen by 20.7% compared to 2023.
