The Euribor at twelve months, a reference index for the majority of the Spanish mortgages, has closed August at -0.048%, thus adding its seventh consecutive month in negative numbers. This value, however, is slightly higher than the -0.056% of the past month of July.

With these values, an average mortgage of €120,000 at 20 years with a differential of Euribor 1% which is calculated with the August index shall have a reduction in the annual payment amount of around €135, that is, about €11 per month.

As a result of the monetary policy decisions made by the ECB in recent years, with the aim of achieving economic recovery, the index has been falling, reaching for the first time a negative value in February (-0.0008%). After five months of declines, it hit historic a minimum in July (‑0.056%).

The experts attribute the current situation to the market expectations of new reductions in the different interest rates given that the ECB has maintained the price of money at 0% since the past month of March.