Mortgage interest rate development August 2017
How does the mortgage interest rate develop in August? You can read it in our mortgage interest expectation. Will the interest rate rise from last month continue?
Will the interest rate rise continue?
Mortgage interest rates rose again last month. The reason was an increase in the capital market interest rate, which in turn was caused by statements by policy makers.
In the United States, the Fed raised the policy rate for the second time this year, as expected. New was the announcement that the central bank umbrella is considering reducing the debt balance, possibly as early as September.
In Europe, the central bank continues to buy loans and the policy rate remains low. Although inflation is rising in the Eurozone (1.3% in July compared to 0.1% in the same period last year), it is still not at the desired level (just under 2%).
Nevertheless, there are signs that the European Central Bank is thinking of phasing out the stimulus policy. A decision on this may already be taken after the summer. This decreases the pressure on interest. However, raising the policy rate, as in the US, is still far away.
Interest rate mortgage expected in August
Most lenders have now adjusted their rates to the increased market interest rate. For August, we therefore expect mortgage interest rates to remain at their current levels and to rise slightly further with a number of lenders.
Getting used to rising interest rates
Thanks to these statements from policymakers, the market can get used to a less broad monetary policy. Companies must take into account more expensive financing, investors can adjust their portfolio and banks already anticipate an interest rate rise.
The ECB wants to prevent market conditions from changing significantly. The gradual phasing out of the purchase program is therefore the most obvious. In this way the central bank can continue to keep pressure on interest rates.
Consumers must take into account a gradual rise in mortgage rates. Are you waiting for this or are you taking action? Request a free mortgage quote now.