The 12-month Euribor closed July at 2.855%, its highest level of 2026, and the August average is hovering around 2.93%. For an average variable-rate mortgage, the annual review means paying roughly €65 more per month. The market has reacted quickly: 60.9% of new home loans in Spain are now signed at a fixed rate, as buyers look to shield themselves from further rises.
Analysts sketch two scenarios for the end of 2026: if energy prices ease, the index could soften to the 2.5%–2.7% range; if inflation picks up and the ECB tightens again, it could finish the year close to 3%. Nobody, in any scenario, expects a return to the zero rates of the last decade.
For buyers in Alicante or Benidorm, the maths is less intuitive than it looks: waiting for Euribor to fall can prove expensive, because property prices keep climbing in the meantime (the province hit an all-time high of €2,764/m² in April, up 12.2% in a year). A tenth of a point less interest does not offset a 10% higher price. The key is negotiating a good mortgage today — banks still compete hard for solvent buyers with fixed rates below 3% — and buying with real local data rather than the listing price.
And if you own property here and are thinking of selling, this environment works in your favour: demand keeps breaking records despite Euribor, largely because nearly half of all purchases in the province are made by international buyers who do not depend on Spanish financing. Ask for a free valuation to find out what your home is worth today, and use our selling costs calculator to see in one minute what you would actually pocket.