How does interest rate develop in October? Read our mortgage interest forecast for this month. Words in it, but (for the time being) in deeds.
ECB continues stiff
The European Central Bank (ECB) is keeping its policy interest rates unchanged for the time being and is continuing its buy-back program. We therefore see the short-term interest rate (variable) unchanged low and the long-term interest rate, for example 10-year fixed light, continues to fall. This situation will continue for the time being. We have to wait for the next ECB meeting, then we will know that Draghi will translate his words into action.
Words, but no actions yet
Other organizations that are (economically) turning the knobs are keeping it to words for the time being:
- The US Central Bank (Fed) is (probably) going to raise the policy rate at the end of this year. We draw this from the explanation of Fed President Yellen.
- The oil-producing countries (OPEC) have agreed on limiting oil production. This should increase the oil price. The real production agreements will follow in November.
End of 2016 and beyond
The low oil price has been troubling the ECB for a long time when raising the price level in the Eurozone. An interest rate increase in the United States has an impact on stock and bond prices. Investors are currently avoiding risk. If the mood changes, this may eventually drive up market interest rates.
These developments may in the long term lead to an increase in mortgage interest. It is therefore necessary to wait until the various policy makers take action. In the meantime, we expect the mortgage interest rate to remain at the current low level .
This gives us nice time to take a closer look at the mortgage interest rate development in 2017. Do you want to stay informed about the mortgage interest rate? mail_outline Tip: Register for the interest rate flash. You receive the mortgage interest expectation in your mailbox every month.