The six-month European Interbank Offered Rate (Euribor), to which most home loans in Estonia are pegged, has risen above 2.9%.

The Euribor rate, which has remained negative since November 2015, hit zero in June 2022 and has been rising rapidly ever since. At the end of August, Euribor had already overcome the 1% mark, and on October 12 it exceeded 2%.

The Europe-wide interbank interest rate, or Euribor, began skyrocketing last year, pushing up the monthly mortgage payments for many people. According to a recent survey, almost a third of Estonians feel the effects of this increase.

On January 2, the rate was 2.732%, on January 6 it exceeded 2.8%, and on January 23 it crossed the mark of 2.9%.

Economic experts predict that this year the rate could rise to 4%.