The pandemic is currently causing inflation to flare up, writes the comparison service Comparis in a statement published on Thursday. In the medium term, however, inflation rates would level off around the central banks’ target of two percent. The fierce competition among mortgage providers is also likely to keep interest rates low.
Against this background, Comparis expects only slight upward pressure, especially for long-term mortgages. The Comparis mortgage rate forecast for 2021 for ten-year mortgages will therefore be expanded from 0.9 to 1.3 percent, from 0.9 to 1.2 percent previously. The benchmark interest rates for five-year mortgages are likely to remain in an interest range between 0.7 and 1 percent.
As of mid-July, the benchmark rate for a ten-year mortgage with Comparis is 1.15 percent and for the five-year term 0.92 percent. Comparis considers the probability of an impending mortgage shock to be low.
Moneyland sees developments in a similar way
The online comparison service Moneyland sees the development in a similar way. Interest rates are likely to remain at a low level over the next few months, according to a Moneyland press release. Depending on the economic development, rising interest rates cannot be ruled out.
According to Moneyland, the average interest rate for ten-year fixed-rate mortgages is 1.17 percent at the middle of the month and for five-year mortgages 0.95 percent, i.e. only slightly above the values of Comparis. This means that the current mortgage interest rates are currently again below the previous average for 2021.
It is still unclear whether the fixed-rate mortgages with long terms will be as cheap this year as in March 2020. At the beginning of the Corona crisis in March 2020, mortgage interest rates had almost reached the historic low of August 2019. (SDA)
Published: 07/15/2021, 5 minutes ago
Last updated: 15.07.2021, 4 minutes ago