We expect the mortgage interest to develop as follows in the coming month.
Inflation and Greece
The month of July is dominated by rising inflation and the problems with Greece. How will the stock markets respond to recent developments ? In recent months we have seen that lenders are rapidly adjusting their rates to changing market conditions.
Long-term mortgage interest rate increased
Capital market interest rates continued to rise in June . Both market leader Rabobank and the most important price fighter Argenta have raised the mortgage interest rate on this. Various lenders have since followed this example. As a result, the mortgage interest rate for the long-term fixed-rate periods increased in June .
The rise in capital market interest rates is the result of rising inflation in the Eurozone. We expect this rising trend to continue in July. Due to the Greek crisis, more investors may opt for ‘safe’ Euro countries. The larger supply on the capital market can put pressure on interest . The ECB’s buy-out program is also still depressing capital market rates.
Mortgage interest expectation in July
We therefore expect that the interest rates for the long-term fixed-rate periods in July will remain at the current low level or possibly rise slightly .
We do not expect any change in July for the mortgage interest for the short fixed-rate periods. The ECB keeps policy rates low, so that short-term mortgage rates also remain at the current low level .
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