Mortgage Rate Trends Graph 2016Hypothekenzinsen-Trends Graph 2016
Mortgages are stabilising - De Nederlandsche Bank
Mortgage interest rate averages for Netherlands commercial mortgage lenders have been falling for some now. From January 2012 to October 2016, prices dropped by around two percent. In October 2016, the interest rate for new mortgage issuance was 2.40% on October 2016. In the last few month the rate slippage has come to a standstill.
Interest on new mortgages has been quite steady since October 2016, and even modest rises have been noticed. The average interest rate for new mortgages granted in June 2017 was 2.41%. The development of mortgage interest in the Eurozone has been similar in recent years and there has also been a modest increase in recent monthly mortgage interest figures (see chart).
However, tax levels differ widely across the Eurozone, with the current levels of low averages in Finland (1.03%) and high in Ireland (3.22%). More recently, Netherlands budgets have begun to fix their mortgage interest rate for longer horizons. During 2016 and 2017, an estimated 75% of new mortgage lending had a fixed-interest period of more than five years, compared to approximately 50% between 2012 and 2015.
That could indicate that household sentiment expects interest levels to increase in the near term as they try to fix their relatively low interest levels. As interest for longer maturities is higher, interest for new mortgages has risen on averages. The development of banks' refinancing expenses also has an impact on mortgage interest payments.
Following a sharp fall, interest rate levels on the equity markets have risen since September 2016, especially for longer terms. 521 billion, which corresponds to a rate of increase of 0.4% compared to the same quarter last year. After a long phase of falling mortgages, Netherlands commercial mortgage lenders have increased their mortgage lendings in recent month and are recording good annualized economic data.