WHAT DOES THE MORTGAGE INTEREST DO THE COMING TIME?
WHAT WILL MORTGAGE RATESDO IN THE NEXT PERIOD?
Mortgage interest rates have risen in recent months, but what are the expectations for the near future? Should you buy or sell now or is it better to wait? We answer all your questions.
Mortgage interest rates have risen in recent months, but what are the expectations for the near future? Should you buy or sell now or is it better to wait? We answer all your questions.
Current situation
With a term of 10 years in combination with NHG (Nationale Hypotheek Garantie) ,the interest rate currently stands at an average of 3.6%, while in September last year it was still at the lowest point of 1 percent. Partly due to the high inflation figures of the past year, both capital market interest rates and mortgage interest rates have risen accordingly. Due to the uncertain times at the beginning of the year, with the war in Ukraine, high energy prices and rising inflation as main players. At such uncertain moments, you almost immediately see that the market reacts and interest rates increase.
Current situation
With a term of 10 years in combination with NHG (Nationale Hypotheek Garantie) ,the interest rate currently stands at an average of 3.6%, while in September last year it was still at the lowest point of 1 percent. Partly due to the high inflation figures of the past year, both capital market interest rates and mortgage interest rates have risen accordingly. Due to the uncertain times at the beginning of the year, with the war in Ukraine, high energy prices and rising inflation as main players. At such uncertain moments, you almost immediately see that the market reacts and interest rates increase.
Past time
Capital market interest rates have fallen sharply over the past two months. In the first months of this year, capital market interest rates rose from approximately 0% to well above 1.5%. When the figures for the capital market interest rate are compared with the mortgage interest rate, a clear connection can be seen between these percentages in recent years. The mortgage interest rate responds to the capital market interest rate with approximately the same increase or decrease. This happened until about 2 months ago. Capital market interest rates started to fall while mortgage interest rates only increased. At the end of the second quarter of 2022, the difference between the mortgage interest rate and the capital market interest rate was still 1%, but this difference has now increased to approximately 2.5%. According to NOS, it cannot be said with certainty that mortgage interest rates will fall, as there are uncertain factors involved. However, there is a greater chance that interest rates will fall than that they will rise again.
Past time
Capital market interest rates have fallen sharply over the past two months. In the first months of this year, capital market interest rates rose from approximately 0% to well above 1.5%. When the figures for the capital market interest rate are compared with the mortgage interest rate, a clear connection can be seen between these percentages in recent years. The mortgage interest rate responds to the capital market interest rate with approximately the same increase or decrease. This happened until about 2 months ago. Capital market interest rates started to fall while mortgage interest rates only increased. At the end of the second quarter of 2022, the difference between the mortgage interest rate and the capital market interest rate was still 1%, but this difference has now increased to approximately 2.5%. According to NOS, it cannot be said with certainty that mortgage interest rates will fall, as there are uncertain factors involved. However, there is a greater chance that interest rates will fall than that they will rise again.
Expectation
According to several news channels, mortgage interest rates are expected to stabilize and even decline slightly in the near future. Experts emphasize that mortgage interest rates could be one percent lower than they actually are.
It is important that not everyone should start cheering early about the slightly cooling housing market, according to Vastgoedmarkt.nl because there are still too few houses available and demand is greater than the current supply. According to NOS, it is expected that mortgage interest rates and capital market interest rates will move closer together in the near future.
It therefore appears that mortgage interest rates will drop again in the short term, but what this will do in the longer term remains a matter of speculation. You can also benefit from this falling interest rate. We are happy to give you personal advice regarding the purchase and sale of your home.
Expectation
According to several news channels, mortgage interest rates are expected to stabilize and even decline slightly in the near future. Experts emphasize that mortgage interest rates could be one percent lower than they actually are.
It is important that not everyone should start cheering early about the slightly cooling housing market, according to Vastgoedmarkt.nl because there are still too few houses available and demand is greater than the current supply. According to NOS, it is expected that mortgage interest rates and capital market interest rates will move closer together in the near future.
It therefore appears that mortgage interest rates will drop again in the short term, but what this will do in the longer term remains a matter of speculation. You can also benefit from this falling interest rate. We are happy to give you personal advice regarding the purchase and sale of your home.
Sources:
De Hypotheker: housing market in impasse due to rising mortgage interest rates. (2022, August 5). Vastgoedmarkt. Retrieved on August 8, 2022, from https://www.vastgoedmarkt.nl/177111/de-hypotheker-woningmarkt-in-impasse-door-oplopen-hypotheekrente
NOS. (2022, August 4). Stijging hypotheekrente voorbij: “Zou procent lager kunnen zijn”. NOS.nl. Retrieved on August 8, 2022, from https://nos.nl/artikelen/2439348-groei-hypotheekrente-voorbij-zou-procent-lager-kunnen-zijn
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