Mortgage rates remain low

Mortgage interest rates remain low for now. Although interest rates on the capital market have risen slightly, experts expect mortgage interest rates to rise only very gradually in the long term

reports Hypotheekshop News. "Since Donald Trump took office as the new U.S. president on Jan. 20, interest rates on the capital market have risen nearly 0.20% point. The last time market interest rates rose this fast in a short period of time, in early November, lenders were still raising mortgage rates en masse. Currently, no such reaction remains."

Part of the reason for the rise in interest rates in the capital market lies in the investments announced by Trump: "These create positive expectations about the economy among investors. Nevertheless, experts expect that interest rates will rise only very gradually in the long term and will remain lower in the coming years than they have been for the past 10 to 20 years," according to Hypotheekshop News.

 VARIABLE

Furthermore, the Hypotheekshop finds it remarkable that several mortgage lenders have reduced variable interest rates in the past week. "The average variable rate had not changed in the last three months," it said.

Looking at the number of interest rate adjustments in January, it is about the same as in recent months. However, the percentage of lenders adjusting interest rates (as much as 94% of all active providers!) is very high, especially compared to January 2016. Only a few parties did not adjust interest rates, such as Rabobank and IQWOON.

Insurers in particular showed themselves active on the interest rate front this month. Woonfonds and Centraal Beheer started remarkably early this season, offering competitive interest rates. Reaal has been a new provider since this month. Besides insurers, many relatively new providers such as Merius, Munt, bijBouwe, Venn and Attens also experienced interest rate cuts.

Source: Telegraph