Home loan interest rates continue to rise: Something new is coming with the fall season, here is what is happening, extreme caution!
In recent years, especially after the coronavirus emergency that literally brought the global economy to its knees, the costs of living have risen dramatically and this can be easily seen from the increase in food, oil and gasoline prices and also from the rise in food, oil and gasoline prices.Increase in interest rates.
In fact, anyone who finds themselves having to pay a mortgage on a house will surely notice that rates have increased little by little, reaching almost unimaginable levels, with an increase in the monthly payment rising last year from $70. % to peaks even exceeding 100%.
This is certainly not an easy time for those who find themselves having to face a mortgage, either, because of this Rates are still risingAs announced by European Central Bank President Christine Lagarde.
The news certainly doesn’t make anyone happy, however There’s something new coming in the next few monthsEspecially next fall, which may bring a smile back to the hearts of citizens. So be careful if you’re paying for a house, because Something very important is about to happen: Let’s find out all the details of the situation together.
Mortgages, interest rates are still rising but there’s something new coming: Pay close attention if you’re still paying, here’s what’s happening in detail
The words of European Central Bank President Christine Lagarde leave no room for much doubt, because she clearly made it clear that there is New increase in interest ratesAn increase of 25 basis points, or 0.25%.
This is the tenth consecutive increase, which will therefore lead to new increases in the monthly installments to be paid for those who have chosen a mortgage with a variable interest rate. But be careful, because Lagarde also made it clear that the peak is near and this could bring more positive news in the coming months.
As peak oil arrives and the cost of oil rises, in fact, In the coming months we could see the trend reversing Therefore, the increases may stop, because it is inconceivable to exceed the 4% threshold.
Another very important piece of news that should not be underestimated is regarding the suitability of fixed rate mortgages compared to variable rate mortgages. If the first has so far proven to be more convenient than the second, with an initial cost of about 1% lower, in the coming months, precisely at the beginning of 2024, the situation could be reversed.
In fact, variable rate mortgages could once again become more convenient right from the startAt a lower cost of about 40-100 basis points. Therefore, pay attention to the best choice to make and to all the changes that may occur in a few months.
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