The Euribor, the most common indicator used in Spain for the calculation of mortgages, closed in December with a median value of 3.452%, the lowest rate since June 2006.
The rate began to drop on October 10th, after reaching a record high during the summer, and has been falling ever since.
On an average mortgage of €150,000 over 26 years and a 0.75% spread, this will mean that monthly repayments will fall by €120 from €910 to €790.
Some experts are predicting that the Euribor rate will continue to decline during the first quarter of 2009, possibly getting as low as 2%.