The 12-month Euribor closed July with a monthly average of 2.855%, its highest level since September 2024, rising six basis points from June and 77 basis points from a year earlier.
The climb will push mortgage payments higher across Europe. In Spain, a €200,000 variable-rate mortgage with a 30-year term would see monthly instalments rise from €808 to roughly €890 upon annual review, while a €350,000 loan would cost borrowers an additional €140 a month. A €150,000 mortgage would increase by nearly €65 monthly.
The European Central Bank held its deposit rate at 2.25% at its most recent meeting, keeping borrowing costs unchanged through July. Danske Bank senior analyst Antti Ilvonen expects the 12-month Euribor to stabilise around or slightly above 3% in the near term.