How does the interest rate develop in May? Read our mortgage interest expectation. This month we see a slight rise in interest rates after the rates have fallen earlier.
Mortgage interest rate line broken
Mid-April, the rising trend in mortgage rates was broken. The falling capital market interest rate was a reason for lenders to take a moment to come to terms with interest rate increases. A number of lenders even chose to adjust their rates directly downwards.
One reason for the fall in market interest rates was the increased tension between the US and North Korea. Inflation rates in March were also disappointing and the European Central Bank indicated that it would keep policy rates low for the time being.
Fierce battle for mortgage customer
It is striking how fast lenders are currently responding to changes in the market. This points to higher competition as a result of which mortgage interest rates fell slightly at the end of April:
- The price fighters use every little bit of margin to be able to offer the lowest mortgage interest.
- We see the insurers and pension funds looking back on the long-term mortgage interest rate 20 years fixed and 30 years fixed.
With the housing market running at full speed, a lot of market share can be gained. Customers also keep fixing their interest for longer, so that customers are insured.
Mortgage interest rate forecast in May
However, it is still too early to speak of a new downward trend in mortgage interest rates. The most important factors for the falling market interest rate now seem to be averted. The tension between the US and North Korea has dropped. The economy in the Eurozone is also showing growth again in April. The inflation rate last month was comparable to that of February.
This is also reflected in the capital market interest rate. This indicator for mortgage interest has continued the upward trend.
We therefore expect mortgage rates to remain at their current low levels in May and possibly rise slightly.