Interest during construction will rise again – Interest low point
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There are still cheap, the construction loans. However, no further record low is expected. The interest rate low point is reached. On the subject of interest during construction will rise again, there are different expert opinions, but who wants to play it safe, which was soon to think about his Mortgage or to request a mortgage.
Time ever new record lows in interest during construction is over
“In the summer months, the capital market yields went from a record low the next. End of August, ten-year yield on government bonds at 2.1 percent, as deep as ever. Accordingly, as compiled by the federal bank mortgage rates fell to a new low.
In September, builders had to for a home loan with a fixed-rate period 5:00 to 10:00 years, on average, only one effective interest rate of 3.65 percent of pay. Thus, the low point but would probably have been achieved. In October and November, she came to the capital markets to a significant upward movement in interest rates. This was due mainly to a rising economic confidence. Especially in Germany, the very rapid economic recovery after the crisis has continued to the last. This year is expected, with growth of gross domestic product from 3.6 percent the highest figure achieved since the boom year 2000. 2011, the growth of two percent will indeed be a little more modest. By historical standards, the pace of economic growth would remain so but still quite strong.
Private consumption and housing to boost economy
Growth drivers are no longer just exports. In particular, private consumption caused last for positive surprises and should we believe 2011 will be an increase of three percent even one of the most important economic supports. The housing investment shows in Germany, thanks to low interest rates and a very good labor market development, a positive upward momentum. After an increase of five percent this year, we consider 2011 a rate of almost three percent in housing likely. Other states in the euro area will benefit by close trade ties of Germany’s role as an economic locomotive. This will not solve the problem of debt in many EMU countries in our estimation, though – a significant mitigation of the situation is expected in the course of 2011, however.
Increase in base rates expected for late 2011
Against the background of continued strong economic momentum in the euro area, we believe a rise in interest rates by the European Central Bank in late 2011 as likely. This will not remain without consequences for the capital market and mortgage rates. Usually, the long-term interest rates begin even before an increase in interest rates to rise. However, we expect only a moderate interest rate hike in the euro area. In this respect, should the conditions for home loans initially remain still at a fairly low level by historical standards. New record lows are expected for the time not anymore. “
