Six-month Euribor keeps climbing, nearing the 3% mark
The six-month Euribor rate, to which most Estonian home loans are tied, rose again at the start of this week, reaching its highest level in nearly two years. The rate is now less than a hundredth of a percentage point away from 3%.
The six-month Euribor rate, which determines the cost of most Estonian home loans, continued its upward trend at the start of this week. Recorded on September 21, the rate reached 2.991% — its highest level in almost two years.
The rate was last higher on October 18, 2024, when it stood at 3.028%. Its most recent peak came in mid-October 2023, when it exceeded 4%. The historic high for the six-month Euribor was recorded in the winter of 2008, when it approached 5.5%.
Impact on households
The six-month Euribor directly affects household spending, since most mortgage loans in Estonia are tied to this rate. The average home loan in the country is around 100,000 euros, with a repayment period typically spanning 20 to 30 years, meaning even a small change in the rate can have a significant long-term effect on borrowers' payments.
