How does the mortgage interest rate develop in May? You can read it in our mortgage interest expectation. This month, the mortgage interest will come in calmer waters.
Mortgage interest in calmer waters
Mortgage interest rates rose sharply in the first two months of 2018. This was followed by a correction that almost offset the rapid rise in interest rates. The mortgage interest now appears to be entering calmer waters. This wave movement has a number of reasons. While the economic outlook has been adjusted up and again, it took a long time for the market to move. When market rates started to move (January and February), the Europlus Bank hurried to nuance the high expectations.
The policy makers indicated that they took ample time to phase out the incentive measures. An expensive Euro (opposite the Dollar) is disastrous for the competitive position of the Eurozone. In addition, inflation is still below the target of just under 2%.
Unrest about a possible trade war after possible import duties from the US did the rest. On balance, the mortgage interest rate is now slightly higher than at the start of the year
When does the mortgage interest rate rise further?
The question now is: when will the mortgage interest rate rise further? Because interest is going to rise is a foregone conclusion for experts. To be honest: this is hard to predict.
That trade war is still hanging above the market. The European Union is currently an example of import duties, but negotiations are still ongoing. The deadline has now shifted from 1 May to 1 June. Trade restrictive measures are now being taken between the US and China on both sides. This creates uncertainty, resulting in low market interest rates.
Waiting to transfer until the mortgage interest rate rises?
Do you wait to transfer until the mortgage interest rate really starts to rise? This can be a smart strategy because your penalty interest rate falls the closer you get to the end of the fixed-rate period. Bear in mind that in the meantime you pay too much monthly.
Whether re-transfer is interesting depends on the first instance on your personal situation. Request a personal rescheduling report for the options in your situation.