January 2007
You're watching the articles of Euribor for the month of January 2007.
The mortgage: 800 euros. The car: 200 euros. Credit cards: 100 euros. Those of the shops: another 60 euros. A TV bought in installments: 100 euros. Total fixed monthly over 1,260 euros ....
So, in summary, are the majority of the cases that come to the unification of corporate loans, a sector that has experienced an overwhelming growth in the past year.
The upward revision-of-quota mortgage, for the rise in the Euribor, threatens to do the rest. To be besieged by debt ever more families to attend these services to scrape a few euros a share.
Since the bodies of consumer protection, these services are not welcome. Alfredo Martinez, the provincial delegate of the Association of Users of Banking Services, Ausbanc distinction between brokers and banks.
Recommends that, if necessary, go to offices of financial intermediation, working with banks, and avoid companies that refinanced directly, because the interest is much higher. 'It must come only as a last choice and by necessity and not for whims, as a journey, because the fact of resorting to such claims and shows that the family has a debt overhang, and it would be illogical. "
In addition, remember that subrogate a mortgage to another bank only of interest within the first third of the life of the loan, 'when you pay big. From that moment does not compensate. " But at the time, was put in the place of families besieged by debt. 'Anyone who goes to these services is because it has no'.
From the consumers' association Facua is recommended to go to a tax advisor or the services themselves before consumer recruit. 'It is a serious problem, leading to confusion for the consumer, they pay very high interest and there are cases of people who have lost their housing because it is demanded as a guarantee of payment'.
Written by Carlos Lopez on Jan. 12, 2007 with 4 comments
Read more articles on Euribor.
The European Central Bank president, Jean-Claude Trichet, said today (after they decide to keep rates at 3.5%) that the risks on price stability over the medium term still pointing upward, despite the recent moderation of inflation.
At the press conference after today's meeting of the ECB's governing council, Trichet calculated that the rate of inflation in the euro zone will remain around 2% in 2007 and said that energy prices will play an "important role" in consumer prices in the early months of the year.
Trichet believes that "look very closely all developments is essential to ensure that risks to price stability over the medium term do not materialize" and reiterated that it is "guaranteed" a "firm and timely" to safeguard price stability .
The head of monetary policy in the euro warned of a persistent upward trend in monetary expansion in the area, driven especially by high credit growth.
"While in the context of interest rates rising, the growth of loans to households has shown signs of stabilization in recent months, albeit at very high levels, the increase in loans to non-financial corporations continues to trend upwards" , Said Trichet.
Therefore, he continued, monetary developments require "very careful monitoring, particularly in an environment of improved economic conditions and a strong development of markets for property in many countries in the euro zone.
Trichet said the outlook for economic growth in the area are favorable and predicted that the thirteen countries that share the euro will grow at rates around potential. According to the ECB president, the expansion of the global economy should remain robust and support exports in the euro zone, while the good times will continue running through the internal demand of the area.
All this, the same day that the Bank of England rate rises to 5%
Written by Carlos Lopez on Jan. 11, 2007 0 comments
Read more articles on Euribor.
Today, the Euribor futures discounted a 100% increase in rates by the ECB by the end of the first quarter. 50% s the possibility of another rise in June.
So we already see what the market expected!
Written by Carlos Lopez on Jan. 10, 2007 with 33 comments
Read more articles on Euribor.
The European Central Bank kept interest rates at its meeting on Thursday and could be applied during the whole year rise of at least a quarter-point, which could be higher and reach the point where it recommends the development of key macroeconomic indicators, according to analysts contacted by Reuters.
Analysts believe that the increase in quarter-point could occur in the first quarter of the year and highlights the importance of the appearance of the ECB President Jean Claude Trichet after the meeting on Thursday, which could provide indications of future movements and even when they exhaust the current cycle of increases in the price of money.
Everything seems to indicate that the ECB will play both types in 2007 as it did last year, when implemented five quarter-point increments and urged the price of money of 2.25% to 3.5% today. Previously, the institution had held for two years in a row rates at 2%.
Inflation is currently at 1.9%, slightly below the desired level of 2% by the ECB, however we must remember that yesterday the oil marked a minimum price for many months.
The global economy could have grown during 2006 at around 5%, according to estimates by the Organization for Economic Cooperation and Development (OECD), while the progression of the euro zone will be between 2.6% and 2.7%. For 2007, the OECD expects growth in the euro zone of 2.2%.
On the other hand, the money supply M3, which measures the money available quickly for the purchase of goods and which is used by the ECB as one of the most reliable indicators of inflation in the short term, in November registered a growth of 9.3% .
Analysts believe that despite the high level of indebtedness in the Spanish economy, an eventual rise in quarter-point in the price of money, up 3.5%, probably will not have a very significant effect.
One of the most immediate consequences of rate hikes is an increase in the Euribor, the rate at which they are granted the most mortgages in Spain. This indicator rose in December to 3921%, which stood at the highest level since May 2002 and noted the fifteenth consecutive monthly rise.
Written by Carlos Lopez on Jan. 10, 2007 0 comments
Read more articles on Euribor.
The Spaniards have their mortgages for a total of 896,042 million euros, according to data for last November made public yesterday by the Spanish Mortgage Association (AHE).
This figure represents an increase of 23.8% and slashing trillion euros, which is the amount estimated by the government for the gross domestic product (GDP), Spanish, 2006.
The AHE, which includes banks, boxes and other credit institutions, advocates moderation in the sector. La Caixa believes that the high level of interest rates in 2007 may slow the pace of household consumption tied to a credit reference variable as the Euribor, which already exceeds 4%.
Against this force, the AHE argues that the change of trend is a reality. In fact, by publicizing the details of the organization in October described that moment as "the turning point" of the system. And advocated a growth rate of the mortgage balance in 2007 of between 14% and 18%.
La Caixa said in its latest report "The rise in the cost of mortgages would tend to reduce the price of housing and depress the consumption of those owners who have to deal with loans with variable rates," she adds. In Spain, 83% of new contracts is linked to the Euribor
In another vein, the Community of Madrid yesterday and the savings bank Madrid signed the renewal for the second consecutive year, the convention Young Mortgage, which offers favorable conditions for the acquisition of the first housing to persons under 35 years. Caja Madrid is committed to providing at least 8000 operations, after granting 14,012 in the past year, at a cost of 2938 million.
Mortgages Young Caja Madrid has received the award for Best Product Mortgage Europe that delivers the European Financial Management & Marketing Association (EFMA).
Written by Carlos Lopez on Jan. 9, 2007 with 7 comments
Read more articles on Euribor.
