It is not perfect, but it is good news. The Euribor interest rates, to which most mortgage loans in Portugal are attached, decreased in November when compared to the previous month. Notwithstanding, those who will have their loans reviewed in December will still be subject to an increase.
After two years of continuous increase, the Euribor interest rates (to 6 and 12 months) decreased for the first time. Up until now, the only exception of the last 24 months was the decrease of the Euribor interest rate (to 12 months) in August this year, when compared to July. However, it increased again in the following months, until now.
Even though the value for the Euribor interest rates which was decided last Thursday is not publicly known yet, the data for November suggests that the rate increase process reached its highest point.
The only question is how long the values will remain at this level. Note that since the creation of the Euro, the Euribor interest rates have only been this high twice, in 2000 and in 2008.
The answer to this question is directly connected to what the Central European Bank decides to do. Its next meeting is scheduled for December 14th, however, no significant change in the monetary policy is expected.
That change can only happen when the Central European Bank decides. That decision, if and when it comes, will result from the assessment of the level of inflation and economic growth within the eurozone.
According to a poll by Reuters, where 85 economists were questioned about the trajectory of the Euribor interest rates and the European monetary policy, there will most likely be a change. A bit more than half of those questioned believe that the European Central Bank will cut the rates by the end of the next year.
