How does the mortgage interest rate develop in July? Read our interest rate forecast. This month we see the indicators continue to fall. Can the mortgage interest be even lower?
Can the mortgage interest be even lower?
Can the mortgage interest be even lower? This question arises after a new round of interest rate cuts in the past month. One of the consequences of this was that the lowest mortgage interest rate was further tightened for 10 years and 20 years for fixed.
Looking at how recently plummeted market rates, the answer is ‘yes’.
Benefit from the low interest rates before the summer? Calculate your lowest interest for purchase or transfer.
Space for more interest rate cuts
The interest rates on many European government loans have fallen to a new low last week. This offers room for lenders to further lower the mortgage interest rate. These market interest rates are an important indicator of the long-term mortgage interest, such as the 10 and 20-year fixed rates mentioned above.
Banks do not only look at market rates, but also at each other. The competition between banks is intensifying, as a result of which they are fighting for the lowest mortgage rates. The consumer benefits!
More is now known about these measures.
The ETB President mentions the “global headwind” for economic growth as a reason for this extra stimulus. The trade war between the US and China (and now also Mexico) and the Brexit ensure that “uncertainty rises and lasts longer than expected.”
Low interest rates for longer
As a result, the ETB has also decided to leave policy rates unchanged for longer. The central bank fixed the ultra-low interest rate until at least mid-2020. This was initially until the end of 2019. The mortgage interest rate will therefore remain low for longer.
So you can benefit even more from the low interest rate when you buy a home or refinance your current mortgage.
The latter, however, is bad news for savers. They do not have to expect a higher interest rate until this time. Anyone who wants to make something out of the return is dependent on (foreign) savings deposits.