Interest rate development in mortgage lending To properly classify the level of current lending rates, it is advisable to take a look at the history of interest rates.
The negotiation of your mortgage lending like a pro: builders, homebuyers and refinancing often raise the question of when is the right time to set the terms of a mortgage loan.
Interest rate development in 2019: The bond market is setting the trend
Interest rates are falling surprisingly again. In 2018, bankers and construction experts knew that bond yields would pick up again this year. The assumption at the time was almost one year old.
The interest rate trend in 2019 is clearly in the opposite direction. Interest rates in 2019 clearly point in the opposite direction. What significance does this have for mortgage lending?
The interest rate development of construction loans is characterized by the performance of the federal bonds so that the construction loans will be extremely advantageous in 2019 as well.
The yield index of government bonds is THE benchmark for the interest rate development of mortgage rates. The interest rate in January 2018 was 0.7 percent. It is currently at 0.1%.
Interest rate trend in 2019
Already 3 years ago there was a comparable situation. At that point, the interest in German government bonds fell to minus 0.2 percent. The interest rate trend in 2019 shows that interest rates of around zero percentage points are expected this year as well.
By the end of 2018, it was expected that the 2 percent limit – the GFI’s target value – would be reached. Today, the GFI is moving in this direction again.
No one is expecting a real crisis, but the predicted economic growth of about 1 percentage point this year is low. As a result of these developments, Good Finance is also asserting a reduction in the economic outlook and taking measures to mitigate recessionary risks.
As a result, banks will continue to issue very low-cost loans in the future. In 2019, the savers will not be satisfied. The interest rates on time deposit accounts will continue to be close to the zero line.
The bottom line is the risk that savers and investors lose assets due to relatively higher inflation. Among other things, only the borrowers benefit from the development planning planned for 2019.
Installment loans are granted around 4 percentage points. As before, real estate financing of slightly more than one percentage point with a 10-year maturity and good credit rating of the borrowers is particularly advantageous.
Pay off the credit-financed acquisition of a property
Many people can still pay off the credit-financed acquisition of a property. The safest way is to secure the currently extremely advantageous interest rate as long as possible in order not to get into debt in future interest rate increases.
Benefit now from this interest rate development 2019 – Real-estate loans can hardly be cheaper. The mortgage lenders are getting younger and younger, claiming larger amounts of credit and paying off their loans.