- U.S. household mortgage rates are expected to rise 8 percent within a year, according to a Federal Reserve survey.
- That would bring U.S. mortgage rates to their highest level in 25 years.
- The average mortgage interest rate in the Netherlands rose sharply last year, but is now stable at just over 4 percent.
- Also read: Mortgage interest may drop slightly in short term due to a turnaround in financial markets
The Dutch housing market is in full swing, with prices falling since the middle of last year. At the same time, mortgage interest rates in the Netherlands have risen above 4 percent for long fixed interest periods. Mortgage interest rates have started to decline slightly in recent weeks.
In the US, things are a bit tougher in the mortgage market. Average mortgage interest rates in the US are 6.4 percent. And released on a Tuesday Research The U.S. Federal Reserve shows that households expect mortgage rates to rise more than 8 percent.
As of February 2000, the average 30-year fixed mortgage rate in the United States was 8.4 percent.
Mortgage rates are rising sharply due to actions taken by the Federal Reserve, the US umbrella body of central banks. It has raised interest rates from near zero to around 5 percent in a year, hoping to curb rising inflation.
While this casts a gloom over the US housing market, US homebuyers can expect some relief soon.
According to A survey by the CME GroupIn fact, the world’s largest operator of financial derivatives exchanges, most traders expect March’s rate hike to be the last.
This will provide some relief to the US banking sector, which has been under pressure since the collapse of Silicon Valley Bank.
From the latest version S&P CoreLogic Case-Shiller IndexReleased Tuesday, U.S. home prices fell on a monthly basis in January, rising just 3.8 percent from a year earlier.
Yale economist Robert Shiller, whose analysis with Carl Case forms the basis for the S&P CoreLogic Case-Shiller Index, said on Monday that he expects housing to remain affordable over the next six months due to an expected slowdown in U.S. economic growth.
“It’s easy to predict the short-term in the housing market, but if you’re a long-term buyer it’s not clear what’s going to happen,” he said. CNBC. “Home prices are very, very high by historical standards. I’ll expand the decline a bit – it’s continuing.”