Mortgage interest rates rising fast; Back at 2017 levels
The mortgage rates are rising fast. In just over two months, the average interest rate for financing a house increased back to the level of five years ago. According to the advice organization De Hypotheekshop, the pace of the increase is not slowing down.
The average interest rate is now just under 3 percent, compared to around 1.5 percent last year. According to the mortgage advisor, the rapid increase is due to fast-rising interest rates on the capital market, where mortgage lenders borrow their money, sparked by central bank plans to raise interest rates to combat inflation.
According to De Hypotheekshop, more people are fixing their mortgage interest for a shorter period due to the increase. "In February, the average was still 20 years. Last week that had decreased to 18.2 years," the mortgage advisor said.
People are also borrowing more to make their homes more sustainable in response to the high inflation and rapidly rising energy costs. "Many homeowners see a savings opportunity in lowering their energy costs."
Reporting by ANP