Six-month Euribor rises for third day in a row

The six-month Euribor, the European interbank offered rate to which most housing loans in Estonia are linked, has gone up for the third day in a row. The rate shows the interest at which banks lend to one another in the euro area.

The indicator fell from 5 to 12 October, but then began to climb slowly again. On 13 October it rose to 2.905%, a day later to 2.924%, and on 15 October it reached 2.954%.

Comparison with earlier levels

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, at almost 5.5%.

Impact on households

The six-month Euribor directly affects household expenses, because most mortgages in Estonia are tied to it, and the interest payments depend on its level. In Estonia, the average home loan is around 100,000 euros, with a repayment term of 20 to 30 years.