In more mortgage related news, the Euribor has closed the month of November with its ninth straight record low at 1.23%, meaning an average saving of 240 euros per month or 2880 per year compared to one year ago, this data is based on an average mortgage of € 150,000 with a repayment term of 25 years. This data will be confirmed in the next few days by the Bank of Spain, and equates to more than three percent below the 4.35% that was in place in November 2008.
The index reached its highest level between the summer and autumn of 2008 and the differential rates between then and this year have reached more than four percent. In it's 10 year history, the Euribor peaked in July 2008 with a monthly high of 5.39%. Analysts believe that interest rates in the euro area will not rise until 2011.
Up until just a couple of months ago, experts expected the European Central Bank (ECB) to raise interest rates from mid 2010, but uncertainty about the extent of economic recovery and the credit crunch has delayed the change in monetary policy from the European regulator.
In fact, 10 days ago, the president of the European Central Bank (ECB), Jean-Claude Trichet said in Madrid that is too soon to declare that the crisis is over and that much of the apparent recovery is due to the support measures made by governments and central banks.
Therefore, investors do not expect any surprises on Thursday's ECB's Governing Council meeting and assume that Trichet will send a reassuring message on the permanence of the aid and its stimulus on the economy.
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