April 2006
You're watching the articles of Euribor for the month of April 2006.
With the above Euribor and 3%, there are many encouraging prospective home buyers to return to a fixed rate when taking out a mortgage. The intention of the European Central Bank (ECB) is to continue to rise throughout this year interest rates. Currently at 2.5% and are speculating with the possibility that in June it was raised to 2.75%, which may result in the Euribor finish 2006 between 3.5% and 4%.
All this can be done more cost-effective recourse to the fixed rate rather than variable, which in recent years has been the most heavily used in mortgage lending for the price so low on money. The downside is that the fixed rate, not low of 4.5% or 5%, usually only granted for repayment period of between 12 and 15 years, so many families could not cope with monthly premiums.
Written by Carlos Lopez on April 17, 2006 with 4 comments
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The monthly fee you will pay, when it comes to amortize their mortgage loan, depends on three factors: the amount of the loan, the interest rate and the plazo.Por the scale of the operation, mortgage loans have a long-term , Which usually already exceeds twenty years and that in some recent deals, reaching 40 and even 50 years.
If you do not change interest rates, the longer the term of the loan the lower the fee and, in cases of mortgage loans for home purchase, these lower fees can be crucial to allow access to the building. However, when the deadlines are already very lengthy, the decline of contributions is much less noticeable, especially the higher the rate.
In the graph and table below, showing how varied the monthly fee for a loan of € 10,000 depending on the length of time (from 5 to 50 years) and for three fixed interest rates (3, 4 and 5%).
Loan in monthly installments of 10,000 € | Interest rates | Duration of the loan in years |
|---|
| 10 | 20 | 30 | 35 | 40 | 50 |
| 3% | 96.56 | 55.46 | 42.16 | 38.49 | 35.8 | 32.2 |
|---|
| 4% | 101.25 | 60.6 | 47.74 | 44.28 | 41.79 | 38.57 |
|---|
| 5% | 106.07 | 66 | 53.68 | 50.47 | 48.22 | 45.41 |
|---|
For example, extending the initial deadline by 33%, from 30 to 40 years, reflecting a reduction in the quota from 15 (if the interest is 3%) and 10% (5% interest). In that same case, the total interest that would pay to reach the maturity of the transaction would increase by 38.75% from 5177.60 to 7184 euros (if the interest is 3%) and 40.97%, from 9324.80 up to 13,146 euros (5% interest).
Written by Carlos Lopez on April 12, 2006 with 2 comments
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Klaus Liebscher, governor of the Bank of Austria and adviser to the European Central Bank (ECB), who has made it known that in June could reach another rise in rates.
Interest rates in the euro area remain very low, even after the latest increase decided by the European Central Bank, and the area's economic outlook remains bright, said Wednesday the member of the governing council of the institution, Klaus Liebscher .
"The level of interest rates remains nominal and real, very low," the official said.
The comments of upside strategists ECB's monetary policy in recent days in reference to the vast amount of cheap money in the euro zone, have made clear that the central bank will seek to raise interest rates again in an effort to reduce amount of excess cash circulating in the area made up of twelve countries.
In his speech, Liebscher expressed a tone of confidence in the prospects for growth, which could also point to a greater tightening of monetary policy.
"The economic outlook, not only Austria but also for the euro zone is significantly brighter," he said.
"Although in the fourth quarter the euro zone remained behind compared to the increase in GDP in the third quarter, the expectations in the short and medium term we can expect a stronger recovery, driven by strong investment and a rise in private consumption," he said.
Written by Carlos Lopez on April 11, 2006 0 comments
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The Euribor a year has slowed its upward climb, at least for the moment, to stand at 3159%, after the European Central Bank (ECB) ruled out a further rate rise in May. In this way, the Euribor softens the upward trend that had so far in April, given that yesterday was in 3260% and in the last seven days had not fallen, even today, of 3.2%.
However, it is normal that the Euribor continue its upward trend, given that the ECB has not changed its monetary policy bias and simply has delayed the next upward movements in the price of money. They added that the fact that the ECB delayed until June next rise in interest rates will not prevent the Euribor continue its upward line, to finish 2006 between 3.5 and 4.0%.
The Euribor to a year broke the barrier of 3.00% at the beginning of last March, coinciding with the last rise in the official price of money in the Eurozone, which was higher in quarter-point by the ECB, until 2 , 50%. 
Written by Carlos Lopez on April 7, 2006 0 comments
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The ECB, hinted a forthcoming increase, possibly in June, interest rates in the euro zone, which yesterday were unchanged at 2.50 percent.
Trichet warned in a press conference that market expectations, which had predicted a hike in May, are not those of the executive organ of the body.
Trichet noted that the ECB will continue to ensure that inflation expectations in the medium and long term in the eurozone remain "firmly anchored at levels consistent with price stability." He warned that risks to inflation continue to rise due to potential increases in oil prices, a more intense increases in administered prices and indirect taxes and mainly to increased wage pressures to move to the salaries the past upswing in crude. The ECB's president recalled that in the past the social partners have complied with wage moderation and considered crucial that they remain responsible and avoid excessive price increases.
The markets take for granted that the price of money will rise to a level of 3% this year, as evidenced by the latest rise in the Euribor, which in March stood at 3105%, its highest level since October 2002.
Written by Carlos Lopez on April 7, 2006 0 comments
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Everything seems to indicate that the ECB will keep interest rates unchanged at 2.50% at its meeting today, and give evidence that could raise rates in May, the experts felt today. Most observers agreed the ECB noted that the entity's president, Jean-Claude Trichet, harden their warnings about inflation risks, indicating that the bank is prepared to raise rates.
The most recent economic data for the euro area, as the improvement of the German and Italian business confidence or increasing the money supply in circulation in the Eurozone, have led many experts to revise their forecasts of the types of movements for the next months to contemplate a rise in May.
So far, the ECB has not changed rates at its meetings to be held outside its headquarters in Frankfurt.
Written by Carlos Lopez on April 6, 2006 0 comments
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