Little difference between rates
By Ruben Koops 2 minutes ago Modified: 0 minutes ago
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Mortgage providers see that mortgage interest rates have started a downward trend. At 3.78 percent (for a fixed period of 10 years), interest rates have reached their lowest point in two years. There are no price promotions with extra low rates yet, mortgage providers keep an eye on each other, which means there is little difference between rates.
Due to the announced interest rate cuts by the European and American central banks, mortgage rates have been in a downward trend for several months.
De Hypotheker reports that the 10-year mortgage rate (with National Mortgage Guarantee) has fallen to 3.78 percent, last week consultancy firm Van Bruggen Adviesgroep also reported this rate as a temporary low.
Under pressure from inflation and central banks, mortgage rates are on the decline.
Especially starters like to use the relatively low 10-year interest rate. They need all available borrowing capacity due to a lack of equity and therefore choose these types of relatively short interest periods, reports De Hypotheker.
“Data from De Hypotheker shows that mortgages with short and medium-term fixed-interest periods are gaining popularity, especially among first-time buyers,” says commercial director Mark de Rijke.
In 2022, the era of ultra-low interest rates came to an end. At the beginning of 2022, the average 10-year mortgage rate was still 1.11 percent, in twelve months it almost quadrupled to 4.27 percent.
But since the end of 2023, there has been a lot of speculation about interest rate cuts on the capital markets, and mortgage rates now appear to be responding structurally with a downward trend.
No competition
Competition in the mortgage market is fierce, but unfortunately that does not result in even lower rates, the various mortgage brokers report. This has to do with the small profits that are currently realized on a regular mortgage.
“Due to the pressure on margins, lenders do not want to implement major reductions. On the other hand, they do not want to price themselves out of the market, which is why lenders keep a close eye on each other,” says a spokesperson for De Hypotheker.
