The Euribor, short for Euro Interbank Offered Rate, is the interest rate applied between financial institutions when they lend to each other and then offer loans to third parties. Calculated by the European Central Bank (ECB), it serves as the benchmark index for many banks’ variable-rate mortgage loans. Therefore, its value is critical: if the Euribor rises because banks charge higher interest when lending to each other, mortgage payments become more expensive. Conversely, if it falls, monthly payments decrease.
In recent months, holders of variable-rate mortgages have experienced relative stability after years of steady increases. Last year, the index exceeded 4%, significantly raising monthly payments for many borrowers. However, in October 2025, the Euribor stood at around 2.19%, moving away from the historical highs seen nearly two decades ago. This gradual decline has brought relief to mortgage holders, as their monthly payments have stopped rising and, in some cases, have begun to decrease.
**Euribor Rate Today**
The Euribor today rose by 20 basis points, settling at 2.798%. As for the May average, it temporarily stands at 2.809%, representing an increase compared to the previous month’s average of 2.747%.
**Housing Purchases Without a Mortgage Rise to 35%**
Since the first interest rate hike by the European Central Bank in 2022, the percentage of Spaniards buying homes without taking out a mortgage has increased notably. According to the latest data from the National Institute of Statistics (INE), approximately 34.5% of home purchases in Spain during the first quarter of 2025 were completed without a mortgage.
