Open mortgage rates rose today +8800 euros – Economy

Bricks, a classic Italian haven, are soaring in price. The escalation of inflation recorded in recent months and the conflict in Ukraine had direct effects on the interest rates applied to mortgages, making it more expensive for families to apply for a loan to buy a property today. Codacons did the math, comparing the rates charged by banks in the pre-conflict period and those in effect today.
Market concerns are particularly affected by flat rates – Codacons Analytics – while Euribor, the benchmark for variable rate mortgages, has remained largely stable in the past four months (the one-month Euribor is set today at -0.54%, compared to -0.58%). From January 3rd, the Eurirs, also known as the IRS, the benchmark index for fixed rate mortgages, has seen a real rise, for example moving to 20-year mortgages from 0.60% at the beginning of January to the current 1.69% .
Those who take out a fixed-rate mortgage today to purchase their first home find final rates on average +0.50% higher than those who started a loan in January: a difference that translates to close to +9,000 euros in total final mortgage outlays.
In January 2022, in fact, the tan rate (that is, the pure interest rate that applies to the loan) on fixed rates was on average 1.20%, while today it is over 1.70%. On the basis of this data, Codacons has made forecasts to understand how price hikes will impact the pockets of consumers intending to obtain a mortgage.
Assuming a €100,000 loan application for a first home and three different loan terms (20, 25 and 30 years), the rate increase today costs up to +24.5€ on each individual monthly payment compared to the same loan requested in January. Most punished are those who take out mortgages at 30 – Codacons analyze again – The higher final rate on this type of loan and longer term of the loan increases the gap, which today leads to a family taking a fixed-rate 30-year mortgage to spend A total of about 8,812 euros more than the same loan obtained at the beginning of January 2022, only for the higher cost of installments and without taking into account other expenses (valuations, practice fees, bank costs).

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