The European Central Bank says the worst is over for interest rates, which means for mortgages

He added: “We are probably at the highest levels and rates, unless there are additional shocks or completely unpredictable data.” They should not continue to increaseChristine Lagarde, President of the European Central Bank, confirmed in an interview with France 2 television that the ECB has no intention of raising interest rates again. This is positive news for many, considering that interest rates have been raised almost continuously over the past year and today the main refinancing rate (which national banks take as a “reference”) is 4.5%, the marginal refinancing rate is 4.75%, and the deposit rate In the Central Bank 4%.

However, there is still no talk of lowering these rates again. “If we win the battle against inflation, that is, if we have certainty that inflation will actually reach 2%, then Prices will start to fall“But at the moment, I cannot give you a date,” she added. Today, inflation, which measures the increase in prices, is expected to remain between 2.5% and 3% through 2024. Only in 2025 should it be but to confirm these estimates, we will have to wait for the first data of 2024. In short, it seems unlikely The European Central Bank should start cutting interest rates before April and May.

What does this mean for those who have a mortgage from the bank? As always, those who already have a fixed rate mortgage will not see any differences. The repayments are already set when you take out the mortgage, which is why they do not depend on the new interest rates decided by the bank or the European Central Bank. Which he has instead variable rate mortgage, Or if he has to apply for a new loan, he will likely see very high numbers for several months yet. This is also why it is useful to know what bonuses are available in 2024 for those who intend to apply for a mortgage.

Once the ECB makes its decision on the interest rate, individual banks may take some time to adjust. This is evidenced, for example, by the fact that since October 2023 the Central Bank has stopped increasing them, but in November mortgage interest rates in Italy were the highest since 2008, as the Bank of Italy recently announced. Even when the cuts arrive, so, Decrease in mortgage payments It won't be instant.

It is not only the ECB that decides the rates offered by individual banks, but also the commercial decisions of each credit institution. Briefly, One cannot rely solely on the European Central Bank To find out what your bank will decide regarding interest rates and mortgage payments, but it's a good initial reference point. Over the next few months, the ECB's position is that there will be no increases, but there will be no cuts either.