Mortgage rates skyrocket: where does it end?

An overview by Van Bruggen Adviesgroep shows that almost all lenders have raised their rates substantially in the past two weeks. The rates rose by 0.37 to 0.45 percentage points.

Historically, however, the interest rates are still low, emphasises the mortgage advice chain. Nevertheless, we are now approximately back to the level of August 2019. Those who now take out a mortgage with national mortgage guarantee (NHG) and fix the interest rate for ten years pay an average of 1.54%. Those who fix it for 20 years pay an average of 1.84%. Ten years ago, the interest rate was still more than 5%.

Will this increase continue? Forecasting the future remains difficult, but mortgage advisors do see that the rise in market interest rates is levelling off. Van Bruggen expects that we will see the same effect on mortgage rates in the short term. Increases will therefore probably be less steep than in recent weeks.

In the longer term, the advice chain does expect rates to be somewhat higher than they have been in the past two years.

Pressure on advisers

Because interest rates are rising so sharply, mortgage advisers are extremely busy with new mortgage applications. Especially transferees want to take advantage of the still relatively low rates. This influx could be a reason for lenders to raise rates a little more, warns Van Bruggen.

Source: Telegraaf