SEB bank asserts that despite the rise of the six-month Euribor above two percent due to market uncertainties, the impact on home loan borrowers is expected to be minimal.
The six-month Euribor has surpassed two percent, influenced by uncertainties in the financial markets stemming from conflicts in the Middle East. SEB bank analyses the situation and believes that while Euribor may continue to rise, driven by geopolitical tensions, the repercussions on mortgage borrowers will be relatively restrained. Currently, there is no significant trend towards mass fixing of interest rates among borrowers.
The tensions in the Middle East have shifted focus back to the oil market and interest rates, leading to a dramatic change in market expectations. In just a few weeks, the notion of potential interest rate cuts has been replaced by concerns over the risk of further increases. This change signifies a significant shift in sentiment among market participants as they adapt to the evolving economic landscape.
Furthermore, SEB points out that fluctuations in oil prices can significantly impact inflation rates, which in turn affects borrowing costs for homebuyers. Banks are keeping a close watch on the situation as it develops, but early signs indicate that a repeat of the shocks experienced in 2023 is unlikely, suggesting a more stable outlook for borrowers despite current fluctuations.
