“When Will Mortgage Installments Start to Decrease in the Current Economic Climate?”

Great news for those busy with payments. Mortgage installments are finally starting to go down. That’s when you’ll spend little

With the advent of the recent economic crisis, inflation has caused costs to rise in every sector of the economy and society.

Citizens have been facing price hikes in their day-to-day expenses, including rents and mortgages. However, there is light at the end of the tunnel for many: mortgage payments are finally starting to come down. This news comes as a relief to those looking to shore up their real estate holdings. In the rest of the article, we’ll explore when costs are expected to fall further and what impacts that could have on household spending.

Mortgage installments are finally coming down: that’s when

As we said at the beginning of the article, the last year hasn’t been easy at all for many citizens who are grappling with mortgage payments. Following the rising inflationIn fact, those who were busy with payments saw interest rates grow in an increasingly worrying way. Despite, however, the impossibility of seeing a clear improvement in the economic situation, some can be glimpsed chink long-term which bodes well for those who expect to return and see mortgage payments fall. But when will it be possible to start paying less?

According to an analysis of the Bce, the effects of the current monetary policy will have an impact on GDP already this year, but inflation is expected to be affected only the following year. Therefore, an imminent drop in mortgage rates is not expected, which is expected to occur only in second quarter of 2024. This will be the year in which, perhaps, we will finally see mortgage payments go down and be able to start paying less.

While the former inflation results will be evident as early as 2023, a peak is expected in 2024 with a decrease of two percentage points by 2025. The impact on GDP will be fasterwith a peak expected as early as 2023 and a reduction in economic activity of 2% on average over the next 3 years.

However, i mortgage rates they will not feel these short-term effects immediately, as underlying inflation appears to persist. Estimates indicate that it will remain above 2% for an extended period, only falling at the end of 2024. This will have a negative impact on mortgage rates, forecasting a summer peak that will take the cost of borrowing above 4%.