Euribor rises to 3.374% while September average nears 3.2%
Euribor rises by 0.048% to 3.374%, while the September average hits 3.166% versus last year's 2.172%. The variables are under scrutiny.
English · Original discussion in Spanish · Published
Euribor reaches 3.374% and strains variable review
The Euribor has started rising again, and it no longer accepts gentle readings. The last week of August 2026 closes with the index at 3.374%, 0.048% higher than the previous record, and the provisional September average remains at 3.166%. Twelve months ago, it stood at 2.172%. The gap between the two figures—nearly a full percentage point—is what any variable mortgage holder will notice in their next review.
For those who signed a fixed-rate loan, the news is simply that it does not affect them.
How much does Euribor increase a variable mortgage?
The installment increases, but not uniformly: the impact depends on the outstanding principal, the remaining term, and the agreed differential. An extra percentage point on a 25-year loan significantly moves the monthly payment, and it is the itemized breakdown that turns an abstract rise into an uncomfortable figure. With August and September averages above the dominant rates of the previous period, the annual review almost always works against the borrower.
Fixed, variable, and mixed: banking knew what was coming
Some view mixed mortgages as a calculated hedge rather than a commercial gift: five or ten years at a fixed rate and then variable, with a differential close to 1.35%, practically what they offered initially as fixed. Mixed contracts spanning three years, signed when money was cheap, are now entering the variable phase. Fixed-rate contracts, in contrast, are today a cause for complacency: cases appear with 0.75%, with 2.5%, and even mortgages signed in 2007 at over 5%, when flats were selling like hotcakes.
The same bank charges more in Germany than in Spain
The comparison between what a Spanish banking group offers in its country and what it advertises in its German subsidiary does not go well. A twelve-month deposit at 2.80% APR until October 31, with a mandatory associated account and a fee of 12.50 euros if the balance drops below 10,000, versus 3.75% or 2.75% four months across the border. Those who manage both offers summarize it with sarcasm: if the same entity improves conditions simply by crossing the border, the problem is not the market; it is the clientele to whom the domestic rate can be applied.
The €STR that doesn't add up and the ghost of 2011
While Euribor scales up, the €STR—the reference used by monetary funds—remains at 2.190%: two references from the same Eurosystem telling different stories. And housing remains stagnant. In 2023, with Euribor at 4.16%, prices did not fall; sellers are unwilling to adjust, and those who bought five years ago see an annual appreciation of 10% plus savings between inflation and the 1.5% interest rate, according to the calculation that repeats itself. With the ECB raising rates, collective memory drifts back to 2011, when it decided to reverse course.
If the cycle continues, the autumn review will hurt more than last year's, and housing price adjustment will remain elusive. Although recent history suggests caution: in 2011, the ECB also raised rates and ended by reversing course, and no one knows yet how much a struggling economy can withstand with housing stuck in a non-market state.
The Euribor has started rising again, and it no longer accepts gentle readings. The last week of August 2026 closes with the index at 3.374%, 0.048% higher than the previous record, and the provisional September average remains at 3.166%. Twelve months ago, it stood at 2.172%. The gap between the two figures—nearly a full percentage point—is what any variable mortgage holder will notice in their next review.
For those who signed a fixed-rate loan, the news is simply that it does not affect them.
How much does Euribor increase a variable mortgage?
The installment increases, but not uniformly: the impact depends on the outstanding principal, the remaining term, and the agreed differential. An extra percentage point on a 25-year loan significantly moves the monthly payment, and it is the itemized breakdown that turns an abstract rise into an uncomfortable figure. With August and September averages above the dominant rates of the previous period, the annual review almost always works against the borrower.
Fixed, variable, and mixed: banking knew what was coming
Some view mixed mortgages as a calculated hedge rather than a commercial gift: five or ten years at a fixed rate and then variable, with a differential close to 1.35%, practically what they offered initially as fixed. Mixed contracts spanning three years, signed when money was cheap, are now entering the variable phase. Fixed-rate contracts, in contrast, are today a cause for complacency: cases appear with 0.75%, with 2.5%, and even mortgages signed in 2007 at over 5%, when flats were selling like hotcakes.
The same bank charges more in Germany than in Spain
The comparison between what a Spanish banking group offers in its country and what it advertises in its German subsidiary does not go well. A twelve-month deposit at 2.80% APR until October 31, with a mandatory associated account and a fee of 12.50 euros if the balance drops below 10,000, versus 3.75% or 2.75% four months across the border. Those who manage both offers summarize it with sarcasm: if the same entity improves conditions simply by crossing the border, the problem is not the market; it is the clientele to whom the domestic rate can be applied.
The €STR that doesn't add up and the ghost of 2011
While Euribor scales up, the €STR—the reference used by monetary funds—remains at 2.190%: two references from the same Eurosystem telling different stories. And housing remains stagnant. In 2023, with Euribor at 4.16%, prices did not fall; sellers are unwilling to adjust, and those who bought five years ago see an annual appreciation of 10% plus savings between inflation and the 1.5% interest rate, according to the calculation that repeats itself. With the ECB raising rates, collective memory drifts back to 2011, when it decided to reverse course.
If the cycle continues, the autumn review will hurt more than last year's, and housing price adjustment will remain elusive. Although recent history suggests caution: in 2011, the ECB also raised rates and ended by reversing course, and no one knows yet how much a struggling economy can withstand with housing stuck in a non-market state.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (91 replies).
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