The Bank of Spain has confirmed that the Euribor rate, the reference index for most Spanish mortgages, ended January at an average -0.253%, compared to -0.263% in December, representing its fifth consecutive monthly rise. Despite this rebound, the market assumes the index will remain in negative territory at least until 2022,given that the European Central Bank is likely to maintain its expansive policy.
This completes six months of the index on a downward trend and more than three years negative.
BancaMarch | The amount of mortgages conceded in March rose +23.2% yoy, which implies a slowdown compared to the +31.2% registered in February.
Spain’s banking sector lost € 5.560 Bn in market capitalisation yesterday after the country’s Supreme Court decided they woud have to pay mortgages taxes and not the final client. Just 24 hours after, the Court announced they will review the decision. Morgan Stanley calculates that the effect of ruling could reach 12 billion euros.