Interest rates on mortgage lending in the usd area have declined
Significantly by more than ten basis points in the last few days, according to information provided by various financial intermediaries, including the Money-based market leader. Mortgages up to a loan expiry of sixty percent are reported to be available again at borrowing rates below five percent. According to estimates by economists, interest rates will continue to fall in the coming months.
According to the experts, the reason for the favorable development from the point of view of builders and owners is the cooling economic trend, which leads to disinflationary tendencies caused by the decline in prices Roh l should be significantly strengthened in recent weeks.
Economic momentum is currently easing worldwide as a result of the US financial and mortgage crisis. Key economic indicators point to a decline in GDP growth in China and Japan as well as in the US and the usd area. A weak economic development always dampens macroeconomic price pressure.
The development of inflation is considered by economists as a central determining factor for the future development of interest rates and thus also the burden on builders. The reason for the significance of the inflation rate is the attitude of the European Sentro Bank with regard to its monetary policy. The central bankers see inflation as a threat to monetary stability and are always tempted to curb inflationary developments through a restrictive monetary policy and thus an increase in key interest rates. It was not until June that the NIM had raised interest rates by 25 bps on its supply of liquidity to the banking sector, given record-high inflation in the usd area.
Due to the looming decline in inflation,
The NIM will be making its first downward interest rate cuts in just a few months, according to analysts. If prices continue to decline in the fossil fuel markets, the HICP inflation rate will fall to very low levels towards the end of the year as a result of the very high level of comparisons, leading to interest rate cuts of more than 50 basis points would be justified.
Builders and homeowners who are looking for an initial or follow-up financing, should be patient and wait for the development of the coming months. The conclusion of forward loans is currently not recommended by financing experts as well as a long interest rate on newly issued loans.
If economic development worsens significantly over a long period of time, interest rates of less than four percent according to experts are conceivable. The central banks traditionally try to support a sluggish economy with cheap money, unless a rapid devaluation of money precludes this goal.