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What is the interest rate development for mortgage loans in August?

Are you curious about how mortgage loan interest will develop in August? We have sorted out a few things for you. As you may have already known, there has been a slight increase in mortgage loan interest rates in the past period. Is this increase now continuing? Or does interest remain stable?

Why did mortgage loan interest rates rise in recent weeks?

In the past weeks, the interest rate for mortgage loans has risen slightly. Before that the interest rate was historically low. The reason for the current increase can be found in the capital market interest rate that has been raised. This rise was in turn caused by various statements by policymakers. Nevertheless, it is expected that the low mortgage loan interest rate will remain. At least for the coming period. This is due to the purchase of money loans in the EU by the central bank. The so-called ‘policy interest rate’ therefore remains low. Even now inflation in the EU is increasing. Below you can read more about the expected mortgage loan interest in August.

mortgage loan interest rates August 2017

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Lenders adjust their interest rates to rising market interest rates. We do expect that interest rates will remain stable in the last two weeks of August. So no further rise. There are still a number of lenders that will increase slightly.

Further movement of the interest rates

For companies that want to apply for financing after August, they have to take into account loans that are more expensive. Most Dutch banks take into account that after August the increase will continue. Investors are already adjusting their portfolios now. The ECB does, however, want to avoid, at all costs, the sudden changes in the market. That is why they will probably have the phasing out of their purchase programs proceed very gradually. This means that the central bank has some influence on interest rates.

What does this mean for you as a consumer?

In August, therefore, interest rates remain stable. However, after August you do have to take into account a slow but certain increase in interest rates, especially on mortgage loans. Soon after, the interest on other loans will also rise. You can now conveniently switch a mortgage loan or take out a loan with a longer fixed-rate period.