The Euribor averaged between roughly 3.238% and 3.249% in September 2026, and its monthly figure reached 3.24%, up from 2.95% in August. After four straight monthly increases, it is at its highest level since July 2024, when it reached 3.526%. September was one of the costliest months of 2026 for borrowers whose mortgages are tied to the benchmark, as annual and six-monthly reviews pass the increase on to monthly payments.
Borrowers with annual or six-monthly reviews will feel the increase first. The index stood at 2.17% in September 2025 and averaged 2.56% in March. The current figure is 1.7 points and 0.56 points higher, respectively.
On 10 September 2026, the European Central Bank raised its basic rates by 25 basis points. The deposit facility rate reached 2.50%. The basic refinancing rate stood at 2.65%, while the marginal lending facility rate was 2.90%.
Consider a €150,000 mortgage over 25 years with a one-point spread over the Euribor. An annual review would add about €85 to the monthly payment, or roughly €1,045 over a year.
A six-monthly review would raise the payment by around €58 a month. The final figure depends on the remaining capital and the agreed spread. The term left on the loan also matters.
The increase could be larger for some borrowers. Online comparison service Kelisto estimates that average monthly payments could rise by more than €100. The gap between the estimates reflects each mortgage’s structure, not a different benchmark rate.
Pressure has been building since January. The Euribor fell to 2.221% in February, then rose to 2.565% in March amid economic uncertainty linked to the war in the Middle East.
The rate kept climbing as the conflict involving Iran and the closure of the Strait of Hormuz pushed up oil and energy prices. Spain's latest inflation figure from the INE is close to 5%, its highest level since February 2023.
In September, the European Central Bank lifted its rates by 25 basis points. The Federal Reserve also raised its rate by a quarter of a point.
The ECB tied its decision to inflation risks and its effort to keep inflation on course for a 2% medium-term target. Borrowing has become more expensive, making protection against another rate change more attractive to many buyers.
Spain’s INE reported that mortgages taken out for homes in July 2026 carried an average interest rate of 3.01% and an average term of 26 years. Fixed-rate loans accounted for 62.3% of new mortgages, while variable-rate products represented 37.7%.
The July figures show the shift. Fixed-rate loans made up 62.3% of mortgages on homes taken out that month, while variable-rate products accounted for 37.7%.
Financing costs already shape household decisions in Spain's housing market. Earlier housing analysis linked Europe's housing squeeze to supply and demand problems; see earlier housing analysis. For variable-rate borrowers, the September figure creates a direct problem: the next review may bring a much higher monthly bill.
The effect is usually stronger on loans with shorter review periods, especially when a large share of the original capital remains unpaid.
Forecasts are split. Joan Balasch of Housfy expects the Euribor to settle near current levels and stop rising for the rest of the year, even if the ECB raises rates again before the end of 2026.
Balasch says the interbank market had already priced in that move. He expects the index could return to between 2.5% and 2.7% by the end of 2027 if inflation eases.
Pedro Ruiz of Kelisto sees more risk. He says the index could stay around 3.1% to 3.3% if energy prices moderate and the ECB makes no further increase.
A fresh inflation surprise would change that outlook. If the Central Bank raises rates again, the Euribor could finish 2026 above its current level.
Variable borrowers have little room for error.
A fixed mortgage does not solve the wider housing-cost problem. The July figures do show that many new borrowers are choosing stable payments over exposure to another Euribor rise.
For existing households, two details will decide the impact: the next review date and the capital still outstanding. Those figures will determine how much of the increase reaches the monthly budget.
