Euribor and Irs in downhill ….
by admin on 05/01/09 at 10:44 am
Euribor interbank rate at three months, fell by more than 3.5% compared to October 2008, bringing families to an average saving of 200 Euros per month, which can reach to over 400 for a thirty-year loan of 200 thousand Euros. These are the data processed by Mutuionline, which are based on the rate of 1, 76% last Friday.
The cut-rate reference, which has the lowest record of 1, 5%, resulted in the vertical drop Euribor even one month, at 1, 36%, and that one week, now all 1.09% o.
The Bank of Italy, says that interest rates have fallen below 5%, also always in January, the average rate on new bank loans to households decreased to 4.78% from 5.08% in December , while the rate declined to 4.89% (from 5.18% in December). The families, in fact manifest the decision when choosing a variable rate in the first two months of 2009 requests, according to surveys Mutuionline have almost doubled from 17.2% at the end of 2008 to 39.7%.
Are the same banks to push the variable, to the detriment of the spread that is always higher. The banks, in fact, buy the majority of the capital to finance its activities on the interbank market in the short term, and paying a price equal to the Euribor rate, whereas the rate of fixed-rate mortgages are calculated taking into account the indices Irs, too ‘it to the minimum levels at this time (the twenty-year is equal to 3.83%).
However, many institutions require that, once this crisis, the Euribor will rise even more than 4%, and then fear in the future to obtain loans at a fixed rate less than you should spend to acquire the money for funding from here, the choice to discourage loans to fixed rate.
The banks also are asking more and more guarantees for those who want a loan switch from bonds to insurance coverage. And they are increasingly less frequent concessions funding to buy the house up to 80% of value: to cover a higher percentage is used in increasingly insurance protecting banks for the remaining 20%.
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