Mortgage rates quickly rise to 4 percent after summer dip

After a brief summer period where mortgage interest rates declined the average rate was back on the rise in the Netherlands. The average stood at 4.04 percent, almost the same as in June. An analysis by mortgage advisors De Hypotheekshop showed that 39 of 40 active lenders increased their rates over the past three weeks.

“Since July, interest rates on the capital market have risen by about 0.90 percentage points, which obviously has consequences for mortgage rates,” the organization wrote. The highest increase in mortgage rate is a 0.40 percent bump on 5- and 10-year agreements at Allianz, asr, and Achmea’s group of lenders. The only mortgage that has not shot up recently is the Hypotrust Elan Plus loan from Argenta.

So far, the higher rates have not led to a fall in the number of mortgage applications. This also includes loans for renovations, new construction, and refinancing.

Mortgage rates have jumped up by an average of 0.05 percent or more on 20 separate occasions since the start of 2022. By comparison, During the economic crisis nearly 15 years ago, mortgage rates rose a total of 23 times. De Hypotheek shop noted that, “At the time of the credit crisis, the interest rate was considerably higher than it was at the beginning of this year.”

A year ago, the average interest rate in the Netherlands was below 1.5 percent for a mortgage. The average is calculated based on the rates offered by 40 different lenders for loans of 5, 10, 20 and 30 years in duration. This includes annuities, and mortgages that are and are not covered by the NHG national guarantee.