How are mortgage rates right now?

16 March, 2023 | Alba Tebar

The current average interest rate for mortgages stands at 3’19% (including both fixed and variable rates). This is the data that Bank of Spain has recently published. The alarming fact is that this number is quite higher than the average interest rate in December 2022, which was at 2’91%.

What does this mean? Well, briefly, that financially speaking and in terms of mortgages, this year 2023 is not the best one for you to buy a new house. In fact, mortgage rates are higher than usual, and specially the variable ones. Nevertheless, we can find a logic explanation to this situation: inflation.

On the one hand, we have the war in Ukraine and the post-pandemic era, which have made transport and raw materials, such as gas, more expensive. And, on the other hand, we have the role of the European Central Bank, which at the beginning of January once again increased interest rates by half a point, leaving them at 3%. The main goal here was to fight against a general increase of prices.

It is true that, given this scenario, you get worried about your future mortgage. Anyways, there is no need to panic. Things are little by little getting better, and bank entities have started to regulate and control more mortgage rates in order to promote them. It is also for their own benefit that they are adjusting rate interests and making them more accessible to customers. And here you have a chance to get a good mortgage in Spain, so you can use it as a second residence for holidays or as a place to retire, for example.

Besides, if you have already contracted a loan for your mortgage with a bank, it is also important to stay informed and updated regarding interest rates. In that sense, having the help and advice of an expert is key.

In Hipotecasplus we offer you our knowledge and experience in that field to keep you properly informed. We are mortgage brokers, so we operate as intermediaries between banks and costumers, in order to find for you the best mortgage option in the whole market, according to your needs and personal interests.

What’s more, we can guarantee you the success and security that you’ll need when finding a new house to buy in Spain. Now that you know, remember you can always rely on us if you need any advice or have any doubts related to mortgage rates. We will be more than happy to help you to find the perfect house for you and your family! Contact usfor free and with no commitment!

Variable interest loans

We’ll focus now on variable loan rates. These are the ones that go up and down depending on the market values, as they are linked to laws of supply and demand. In Spain, most of the variable mortgage rates depend on Euribor, the average interest rates at which a large panel of European banks borrows funds from one another.

In fact, Euribor is not only used in Spain, but in most European countries, as it provides the basis for the price and interest rates of all kinds of financial products, such as interest rate swaps or saving accounts, among others. In addition, another interesting information related to euribor is that there are different maturities, ranging from one week to one year.

Specifically, if you have taken out a loan at a variable interest rate, the rise in mortgage prices will affect you to a greater extent. In this sense, Euribor closed 2022 with the biggest rise in a year in its history, exceeding the 3% barrier. And so far in 2023, the Euribor has already stood at 3’86% this March. This is not an encouraging number, but, as it is usually said, hope is the last thing you can lose!

Fixed interest loans

This first semester of 2023 has shown mortgage rates are higher than usual, as we have been explaining. The truth is that there is no specific number at which fixed-interest loans are right now; because it directly depends on the terms and conditions every bank entity decides.

However, to give you a general idea of the values you’ll experience in Spain, we can tell you they are mostly higher than 3%. There are some bank entities that will offer you a 2’84%, but the majority of banks are offering their customers numbers around 3% and 3’5%.

With this scenario, it is very important to have an expert like us with you. Because we can look for the bank entity that better suits you and your interests and will negotiate with them to give you the lowest interest rate of the market you can get according to your personal profile.

Online calculator

Anyways, the best thing you can do to calculate the increase in your mortgage is to use our online mortgage simulator. This tool is also useful if you are about to buy a house in Spain and want to know if you would have enough economic welfare to handle it.

In Hipotecasplus we offer you a totally free calculator that you can access through our website, and that in a matter of seconds will give you all the answers you need. This simulator, based on a series of personal information that you must fill in, will calculate the monthly payments that you’ll need to manage in terms of your mortgage loan.

And, remember, if you have any further doubt or want to discover deeper about a certain topic related to mortgage rates, do not hesitate to contact our team! We’re here to help you!