The average mortgage interest rate is currently at its lowest level in two years, reports De Hypotheker. The mortgage advisor also expects mortgage rates to fall further if the European Central Bank (ECB) decides to lower the interest rate in September. That is good news for home buyers, although the decrease in mortgage rates will remain modest.
The average mortgage rate that is fixed for ten years with National Mortgage Guarantee (NHG) is currently 3.78 percent. In September 2022, it was still 4.04 percent. According to De Hypotheker, there has now been a slight decrease for seven weeks in a row, also for mortgage rates with a different fixed-rate period.
“This is a positive development for home buyers,” says commercial director Mark de Rijke of De Hypotheker. “Many young home buyers want to borrow as much as possible in this overheated housing market and prefer a 10-year interest rate. For this group it is beneficial that their borrowing capacity increases when interest rates fall.”
However, that interest rate will not fall at a rapid pace. “With the expected announcement of a new interest rate decrease by the ECB, capital market rates may fall further, with fixed mortgage rates following with some delay,” he explains. “However, competition on the mortgage market is fierce and due to the pressure on margins, lenders are keeping a close eye on each other. We expect mortgage rates to fall further, but that this decline will remain modest for the time being.”
Source: De Hypotheker
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