Six-month Euribor tops 3% mark again in Estonia
The six-month Euribor, to which most Estonian home loans are tied, rose to 3.03% on 21 October. It has now crossed the 3% level for the second time this year.
The six-month Euribor, the European interbank offered rate to which most housing loans in Estonia are linked, has again risen above the 3% mark. The rate determines how much households pay on their mortgages, so changes in it matter to many people in Estonia.
Rate movement
On 20 October the six-month Euribor stood at 3.017%, and on 21 October it climbed to 3.03%. Earlier this year the rate was above 3% from 23 September to 5 October, so this is the second time it has crossed that level.
Current levels are not the highest on record. At its peak in mid-October 2023, the rate exceeded 4%. The all-time high for the six-month Euribor was recorded in the winter of 2008, when it reached almost 5.5%.
Impact on households
The six-month Euribor directly affects household expenses, because most mortgages in Estonia are tied to it. The average home loan in Estonia is around 100,000 euros, and the repayment period is typically 20 to 30 years. Over such a long term, even a small change in the rate can affect borrowers' monthly payments.
