Mortgage Interest Rate Development

Like almost all interest in credit and investment operations, so also the change mortgage rates almost continuously since the banks relatively quickly make interest rate adjustments here. Both current and future interest rates are of great interest to both borrowers and creditors.

But the historic building interest can provide important information , as there may be derived from previous development regularities which permit a conclusion on the possible development of interest rates in the future.

But as was actually the mortgage interest development in recent years, and at what level are the Winnipeg mortgage rates currently? In the last ten years, mortgage interest rates have developed almost exclusively in one direction, namely “downwards”. While an average interest rate of around 1.90 to 2.20 per cent has to be paid for a ten-year interest rate fixation, the interest rate was around 4.70 a year ago, and just over six per cent, a little more than ten years ago (2002).

Why Is The Mortgage Interest Rate Development Characterized By Falling Interest Rates?

What is the reason that has ultimately led to the hypothesis that the mortgage rate has been affected by the development described in the last five to ten years? The core cause of the interest rate development is certainly that the economy in Germany and in the European Union has not developed as desired.

Since the financial crisis of 2008 at the latest, the economy in Europe has in principle not returned “right”. The impact of the unsatisfactory economic development was that the ECB has cut interest rates several times.

While the key rate stood at 4.25 percent in the middle of 2008, it is now even less than one tenth of this size, just 0.05 percent. And after the fall of interest rates in 2014 and 2015 continued to decline significantly as a result also of the mortgage rate.

What About The 2016/2017 Future Mortgage Interest Rate?

As the mortgage rates will develop in the coming months and years, even the experts cannot say at present. It depends above all on whether the school situation in Europe will settle down and the economy will be able to take off again.

If this is the case, it could in the near to medium future come to interest rate increases, then a rise in mortgage rates result should have.

However, it may also be that the interest rates remain at the same level of interest for months or even a few years.

Only a further stronger decline of mortgage interest most experts believe also in 2016 rather unlikely. The current interest rate development, ie the expected conditions for building money in 2016, will be decisive for whether mortgage financing remains favorable and thus real estate financing is affordable for everyone.