Interest rates in Europe have increased several times since July 2022. This comes after an increase-free period of 11 years. Will they continue to rise? We anticipate they will, at least a little.. Euribor, the reference interest rate for mortgages in Spain, could easily go up to 3.5%. I expect it to drop once inflation will be under control. Nobody has a crystal ball, but rates fluctuating in the range of 3% are quite healthy for a country's economy in the long run.
To help you put this percentage in perspective, take a look at the graph, which shows the Euribor interest rate evolution for the last two decades. It’s important to know that there have been two occasions since the year 2000 when interest rates have exceeded 5%. Watch the full video here to find out more about interest rates.