How does the interest rate develop in June? Read our mortgage interest expectation. This month we see the interest rate rise continuing in line with market interest rates.
Mortgage interest rate rise continues
Mortgage interest rates continued to rise in May. Among other things, banks raise their interest rate for the 10-year fixed-rate mortgage.
With the interest rate increases, the lenders are following the development of the capital market interest rate. This market interest rate is an important indicator for the long-term fixed-rate periods.
Now that the mortgage interest rate is rising, many people want to fix the low mortgage interest rate for a long time.
Pressure on interest rates
Market interest rates have risen due to good inflation figures in the Eurozone. In April inflation was again 2%. The result of the French presidential election also reassures the market.
2017 is the year of truth for Europe and the Euro. Elections in major Euro countries create uncertainty about the future of the European Union and the single currency. After the final Brexit, the tide now seems to be turning somewhat with pro-European election results in the Netherlands and in particular France.
There will be elections in Germany and Italy later this year. A crisis has not yet been averted. The European Central Bank (ECB) therefore wants to keep pressure on interest rates in order to continue to stimulate the economy.
3 interest rate hikes in 2017
In the United States, economic support is now being phased out. Despite the disappointing inflation rates, 3 increases in the policy rate are planned this year. In March, the umbrella organization of central banks (the Fed) raised interest rates for the first time. Analysts expect the next increase in mid-June.
In addition, it appears from the March meeting minutes that the Fed will ‘reduce the balance’ during the year. This means that the broad monetary policy of the Federal Reserve will come to an end this year.