The Euribor rate rose this Monday (23) for three, six, and 12-month terms, with the two longer terms reaching their highest levels since February 2025 and October 2024, respectively. With these changes, the three-month rate, which rose to 2.129%, remained below the six-month (2.468%) and 12-month (2.740%) rates. The six-month Euribor, which became the most used rate in Portugal for variable-rate home loans in January 2024, rose today to 2.468%, up 0.062 points from Friday, marking a high since February 2025. Data from the Bank of Portugal (BdP) for January indicates that the six-month Euribor accounted for 38.93% of the stock of variable-rate loans for permanent primary residences. The same data shows that the 12-month and three-month Euribor rates accounted for 31.78% and 24.98%, respectively. Similarly, the 12-month Euribor rate rose today to 2.740%, up 0.082 points from the previous session, a new high since October 2024. The three-month Euribor also rose today, fixed at 2.129%, up 0.018 points. On 19 March, the ECB maintained its key interest rates for the sixth consecutive monetary policy meeting, as anticipated by the market, following eight reductions since the entity began its cutting cycle in June 2024. The next ECB monetary policy meeting will take place on 29 and 30 April in Frankfurt, Germany. Euribor rates are set by the average of the rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market. The ECB intended to hold interest rates at 2% until June, but markets foresee a rise to 2.25% in April and 2.5% in the summer.
Euribor rates rise to over one-year highs for 6 and 12 months
Context & Explainers
Euribor (Euro Interbank Offered Rate) is the benchmark interest rate at which major European banks lend to each other. It directly affects most variable-rate mortgages in Portugal, where the vast majority of home loans are indexed to 3-month, 6-month, or 12-month Euribor rates.
When Euribor rises, monthly mortgage payments increase at the next review date; when it falls, payments decrease. The European Central Bank's (ECB) monetary policy decisions are the primary driver of Euribor movements — rate hikes push Euribor up, while cuts bring it down.
Euribor peaked above 4% in late 2023 after aggressive ECB tightening, then gradually declined through 2024–2025 as the ECB began cutting rates. Portuguese homeowners with variable-rate mortgages should track Euribor trends and their mortgage review dates to anticipate payment changes.
