Mortgage interest rates near highest point in eight years

Mortgage interest rates in the Netherlands are currently at their highest point since the beginning of 2014. The rate skyrocketed in the past week, with almost all mortgage lenders increasing their rates, NU.nl reports.

The mortgage rate for five years of fixed interest rose the most, by 0.37 percent to 3.84 percent. Rates for a fixed interest rate for ten years increased by an average of 0.34 percent to 3.98 percent.

The other rate variants also saw sharp increases, and more are expected this week, mortgage advisers said to the newspaper.

Last week, the Hypotheekshop reported a slight panic among the mortgage lenders, with some increasing their rates multiple times in the week. The mortgage adviser blamed the rate hikes on interest rate increases by central banks like the European Central Bank and the American Fed, as well as the sabotage of the Nord Stream pipelines last week.

For comparison, the mortgage interest rate was historically low at around 1.5 percent a year ago. They spiked in the first half of this year, increasing to over 4 percent in many cases. The interest rates leveled off a bit in the summer but have been climbing again these past weeks.

Earlier on Monday, De Hypotheker reported that the increasing interest rates have resulted in mortgage demand plummeting in the third quarter. According to the chain of mortgage advisers, the total number of applications decreased by 20 percent compared to the same period last year. Lenders received three-quarters fewer requests to refinance a mortgage. The number of applications for a mortgage to purchase a house fell by 7 percent.