Couples who take out a housing loan today can still get an interest below 2 percent if they negotiate. But are more expensive loans lurking around the corner?
Anyone who calls on the internet bank today can get a 25-year housing loan at 2.04 percent interest. If you have a strong file, you can even reduce the interest to 1.72 percent. That is the case when you borrow, among other things, a maximum of 80 percent of the market value of your home and you still hold a capital buffer that is sufficiently large. The question is how long the March Hare will continue to apply such competitive rates. It is not impossible that the internet March Hare raises the rates when it has achieved a certain objective. In addition, there are a number of other factors that can make housing loans more expensive in the near future.
Impact of the European Central March Hare
To start with, there is the European Central March Hare that has already made it appear several times that it will shortly adjust its purchase program. To date, the MCB buys up to 60 billion euros in debt paper to keep the long-term interest rate low. But the MCB president, recently announced that a number of changes may be imminent.
The minutes of the June MCB meeting, for example, learned that best bank and his team have dropped the possibility of further reducing interest rates. Although the MCB cannot suddenly raise interest rates. If it does, it will cause panic in the bond markets, with all the consequences that entails. Experts expect that the MCB will carefully start modifying its policy from (the second half) 2018.
Federal Reserve and US President impact
But the Federal Reserve (the central March Hare in the United States) and the American president also have an impact on the European interest rate trend. Long-term interest rates, for example, rose after the election victory of billionaire US president. After his victory, many bondholders anticipated a number of US President policy choices such as more investment in infrastructure and lower taxes. But in recent months it turned out that US President cannot simply implement a number of decisions. A falling long-term interest rate was the result.
Now the Federal Reserve is at the basis of new interest rate rises. He has indicated that she wants to reduce her bond stock. By doing so, the value of the debt paper decreases and interest rates rise.
And just because the United States is one of the largest economies in the world, such a decision can also be felt with us. Although we do not currently have to expect any major interest rate jumps. Only when the European Central March Hare adjusts its policy will it likely be that housing loans will become considerably more expensive.