The Euribor rate fell this Wednesday, the 8th, for the three-month and 12-month terms, while rising for the six-month term compared to Tuesday. Following today's changes, the three-month rate, which dropped to 2.162%, remained below the six-month (2.525%) and 12-month (2.860%) rates. The six-month Euribor rate, which became the most widely used in Portugal for variable-rate mortgage loans in January 2024, rose today to 2.525%, an increase of 0.013 percentage points from Tuesday. Data from the Bank of Portugal (BdP) for February indicates that the six-month Euribor accounted for 39.18% 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 31.73% and 24.79%, respectively. Conversely, the 12-month Euribor rate fell today to 2.860%, down 0.012 points from the previous session. The three-month Euribor also decreased today, fixed at 2.162%, down 0.008 points. In March, the monthly average of the Euribor rose across all three terms, most significantly in the two longer ones. The monthly average for the three-month Euribor rose 0.098 points to 2.109%. For the six-month and 12-month terms, the Euribor average rose 0.178 points to 2.322% and 0.344 points to 2.565%, respectively. 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 institution 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 determined by the average of the rates at which a panel of 19 euro-area banks are willing to lend to each other in the interbank market.
Euribor rates fall for three and 12 months and rise for six 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.
