The rapid rise in mortgage rates appears to be over. While in the first four months of this year there was still an increase of about two percentage points and in some cases doubled, the pace slowed in May. So mortgage advisor De Hypotheker talks about a settlement.

Rapid increases in interest rates mean that home buyers can borrow a smaller amount. “A couple with a combined income of €75,000 with a twenty-year fixed-rate period can still borrow approximately €385,000 in January, at 1.94 per cent,” says Michel van den Acker of De Hypotheker’s board of directors.

Now that the interest rate is almost twice as high, that amount is down by more than 18,000 euros. “An amount that can make the difference to whether or not you are able to buy your dream home,” says Van den Akker.

However, this also leads to a decrease in the number of people interested in the home and this is a positive, according to van den Aker. “Homebuyers are less compelled to bid much higher than the asking price. This is cooling the housing market and this is a healthy development.”