With the Trump’s victory to the elections, i fixed rates of the new Italian mortgages they could go up. Why? The experts at Facile.it explain it, highlighting how Trump’s election could lead to an increase in inflationary pressures in the United States and therefore force the FEDthe American Central Bank, to embrace a more restrictive policy moderating the pace of rate cuts undertaken in recent months. A choice which, if realized, could also have effects on the European markets and, in turn, on Italian mortgage rates, in particular fixed rates, which could start to grow again.
It is, explain the experts at Facile.it, one market logic: the FED’s possible choice to slow down with the rate cut would lead to an increase in the yields of American government bonds, which would thus become even more attractive compared to European ones. This would lead to a flight of capital towards the USA with the effect of increasing sales, and therefore yields, of European bonds, and with inevitable repercussions also on IRSthe reference indices for Italian fixed rate mortgages.
Therefore, if the IRS were to increase the rates of new ones mortgages they would go up. As proof of the fact that this is anything but a remote scenario, for a few days now it has been possible to notice how the European bond market (for example the 15-30yr Euro Government Bond ETF) is seeing, driven by American government bonds, an increase in their yields, with the first upward movements also for IRS.
