Euribor forecast of April (at 12 months)

Forecast of April average: 1,707 (Reliability: 3%)
Oficial value of day 31/3/09: 1,812

Comments: This forecast has been done taking into account a hypothetic reduction rates of 25 basic points, leaving the official interest rate at 1,25. If at the end the ECB won't reduce the interest rate, obviously the forecast will be different.

But from my point of view there are two additional scenes:

• ECB lefts unchanged the rates in April, and the reduction will be done in May of 50 basic points.
• Or the reduction of 50 basic points will be done in April leaving the interest rates in Euro Zone at 1%, and from my point of view this will be the possible floor of interest rates in Euro Zone.
• Or the example with I'm considering above reducing 25 basic points in April and additional 25 points will be reduced in May or June, the target will be the same leaving the interest rates at 1%.
  

<__date__interest>
01-April 1,802 Theorical expected value
02-April 1,792 ECB hypothetic reduction rates:-0,25
03-April 1,782 Theorical expected value
06-April 1,772 Theorical expected value
07-April 1,762 Theorical expected value
08-April 1,752 Theorical expected value
09-April 1,742 Theorical expected value
14-April 1,732 Theorical expected value
15-April 1,722 Theorical expected value
16-April 1,712 Theorical expected value
17-April 1,702 Theorical expected value
20-April 1,692 Theorical expected value
21-April 1,682 Theorical expected value
22-April 1,672 Theorical expected value
23-April 1,662 Theorical expected value
24-April 1,652 Theorical expected value
27-April 1,642 Theorical expected value
28-April 1,632 Theorical expected value
29-April 1,622 Theorical expected value
30-April 1,612 Theorical expected value

This is an example with the interest rate showed above:
A mortgage of 180.000 €.
Quantity added by the bank to the official interest rate: + 0,5
Mortgage years: 30.
The monthly payment will be: 684,10€
Compared one year ago (in April'08: 1001,79 €):
Expected monthly savings will be.: 317 €
Expected Yearly savings will be.: 3812 € (-31,71%)

(The monthly payments are calculated using the french metod type)

Note: On right you have a small application where you can calculate your mortgage monthly payment.

Comment: On top right in the link "Euribor rates (1w.-12m)" you will find the 15 types of Euribor, (updated every day around 14:00 hours).

Published date: 31/3/2009 at 14:30