Mortgage Rates 2018: Outlook for the Second Half of the Year
The second half of the year has already begun – a reason for us to take another look at the development of construction rates. In today’s article, we would like to submit our current assessment of interest rates.
An interest rate market with little movement so far
First, a look back at the evolution of mortgage rates over the past few years. Overall, the trend is very clear, with interest rates on real estate loans plummeting in the last decade. Since the global financial crisis in 2008, it has been almost entirely downhill. Interest rates reached their lowest level in autumn 2016.
Interest rates have since risen again, albeit only slightly. At the moment, it looks like this fall defines the bottom of mortgage rates since the post-war period.
The rise in interest rates that followed is considered moderate. Especially in the course of this year, the market was relatively rigid.
The interest rates remain at a relatively constant level, at times there were short-term breakers down, which some builders and buyers could use with luck to benefit from the offered interest rate advantage.
Much movement is not expected in mortgage rates
Nobody can calculate with absolute certainty how interest rate markets will develop over the coming months and years. We ourselves assume that comparatively little will happen in the near future.
Significantly falling interest rates are relatively unlikely because the pressure on the Good Finance Bank is now large. Several industries – in particular the insurance industry – are calling for a sharp turnaround in interest rates, and even in the international political environment there are increasing calls for a turnaround in interest rates.
On the other hand, the GFB has little room for maneuver. On the one hand, there is already a hint of a slowdown in the economy. While most experts do not predict a collapse, they have their doubts that past economic growth can be sustained.
On the other hand, financial problems in countries such as Greece and Italy are far from resolved. This is where a great danger lurks for the EU. If these countries do not receive sufficient support, further EU withdrawals similar to Brexit could threaten what the EU really wants to prevent.
From the previous low the construction field is only slightly removed, ie real estate loans are still very cheap. However, a significant decline in mortgage rates is unlikely, as well as a sharp increase. Interest rates are likely to continue to move sideways in the coming months, say, to remain at current levels.
Budding builders, homebuyers and retraining should still be careful. Even though the market is hardly on the move, there can be considerable differences between the loan terms of individual banks. An interest rate comparison, therefore, remains extremely important.
Conditions of more than 400 banks in comparison
Our independent consultants will gladly assist you in comparing current mortgage rates. We would be happy to evaluate the terms and conditions of more than 400 banks and building societies for you.
We quickly determined where to attract low-interest rates for your mortgage lending. Of course, our service is non-binding and free – you never take a risk. Curious? We look forward to your inquiry!