How does the interest rate develop in November? Read our mortgage interest expectation. This month we are slightly raising our expectations due to changed market conditions.
Lowest mortgage interest rate increased
At the end of October, the lowest mortgage interest rate rose from 0.94% to 1.15%. GoodZ stopped its promotional interest rate below 1% and passed the baton of the lowest rate in the market to SNS. Such interest rate promotions are often temporary and an increase is therefore not a surprise.
Market conditions are changing
But there is more to it. The interest rate on government bonds rose in October. This applies to government loans in the Eurozone, but also to US and UK bonds. This capital market interest rate is an important indicator of the long-term mortgage interest rate, for example 20 years fixed.
Analysts mention the following positive market developments that underlie this:
- The British economy is growing unexpectedly, despite the uncertainty of the Brexit referendum.
- Higher inflation rates expected for the Eurozone.
- The US Central Bank will almost certainly increase market interest rates in December.
- ECB President Draghi confirmed the rumor that the support program is being phased out.
Mortgage interest expectation November
In November, more lenders will adjust their mortgage rates to these changing market conditions. We have therefore slightly adjusted our mortgage interest rate expectations upwards.
We expect the mortgage interest rate to remain at the current low level. The long mortgage interest rate may rise slightly.
Is this the turnaround?
Is this the turnaround for mortgage interest? This depends on whether the positive market developments continue. Is inflation actually rising? Will the Fed and ECB change their policies? Enough reasons to closely monitor mortgage rates in the coming. Register for the interest rate flash. You receive the mortgage interest expectation in your mailbox every month.
- Mortgage interest expectation 2016
- Mortgage interest rate development 2017