DragonyxXL
2016-11-16 09:57:38
- #1
Since the last significant interest rate increases were already a year ago, I just wanted to briefly inform you that something has moved.
10-year mortgage interest rates have risen by ~0.1%
15/20-year by ~0.14%
So, if you have an offer and are currently considering waiting for better times, this might help with your decision-making.
There is certainly no need to panic now, but the forecasts of stable short- and medium-term interest rates from recent months could well change.
I’ll quote a bit:
Several reasons circulate in the markets for the worldwide interest rate increase since the election outcome in the USA. In addition to the recently positive stock market sentiment, the expected fiscal policy of a Trump administration is cited. During the campaign, the Republican promised significant tax cuts and high infrastructure spending. This points to rising government deficits and higher inflation rates. The interest rate increase is particularly strong for long-dated securities. Experts therefore speak of a steeper yield curve - often a sign of higher growth or inflation expectations. Many investors expect the US Federal Reserve to raise interest rates at the meeting on December 14. The interest rate increase in the euro area was reinforced by media reports claiming that the ECB might scale back the current bond-buying program, which, according to current plans, runs until March 2017 at 80 billion euros per month. As always, there are, of course, expert opinions that expect the US Federal Reserve and the ECB to continue their low-interest-rate policies.
10-year mortgage interest rates have risen by ~0.1%
15/20-year by ~0.14%
So, if you have an offer and are currently considering waiting for better times, this might help with your decision-making.
There is certainly no need to panic now, but the forecasts of stable short- and medium-term interest rates from recent months could well change.
I’ll quote a bit:
Several reasons circulate in the markets for the worldwide interest rate increase since the election outcome in the USA. In addition to the recently positive stock market sentiment, the expected fiscal policy of a Trump administration is cited. During the campaign, the Republican promised significant tax cuts and high infrastructure spending. This points to rising government deficits and higher inflation rates. The interest rate increase is particularly strong for long-dated securities. Experts therefore speak of a steeper yield curve - often a sign of higher growth or inflation expectations. Many investors expect the US Federal Reserve to raise interest rates at the meeting on December 14. The interest rate increase in the euro area was reinforced by media reports claiming that the ECB might scale back the current bond-buying program, which, according to current plans, runs until March 2017 at 80 billion euros per month. As always, there are, of course, expert opinions that expect the US Federal Reserve and the ECB to continue their low-interest-rate policies.