The Euribor rate fell this Wednesday for three, six, and 12-month terms compared to Tuesday, after having risen the previous day to its highest levels since January 2025 and September 2024 for the two longer terms. With these changes, the three-month rate, which dropped to 2.135%, remained below the rates for the other terms.
Euribor rates fall across all maturities
Wednesday, 25 March 2026RSS
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.
