How does the mortgage interest rate develop in August? Read our interest rate forecast. This month we again expect many interest rate cuts. Where does this end?
Low interest rates break records
Last month we processed 47 interest rate cuts in our mortgage interest overview. Some lenders even lowered their rates several times in July. This has contributed to the fact that the lowest mortgage interest rate for 20 years has fallen below 2% for the first time.
With these interest rate cuts, lenders follow the development of the financial markets. These fell further to a historic low last month. For example, the interest rate for the 10-year Dutch government loan has fallen below 0% for the first time.
Would you like to benefit from the low interest rates this summer? Calculate your lowest interest for purchase or transfer.
Central banks are taking action
The financial markets anticipate measures taken by the central banks in the United States and Europe to stimulate the economy.
- This week, the US central bank was the first to add the word. The Fed lowered US interest for the first time in 10 years.
- The European Central Bank has also opened the door for new incentive measures. Analysts expect the ECB to lower the policy rate in September.
With a lower interest rate, banks can find money cheaper to borrow. This must stimulate spending and thus the economy.
The outlook for the economy has become less bright in recent months. Global trade shows weak growth, partly due to the trade war between China and the US.
Mortgage interest expectation August 2019
For lenders there will therefore be room in the coming months to further lower the mortgage interest rate. The first (announced) interest rate cuts are also a fact. We expect mortgage rates to fall further in August.
It is difficult to predict how far interest rates can fall. Much will depend on how the economy will respond to the new stimulus measures. The statements of the ECB in particular provide insight into the long-term interest rate policy. The central bank has indicated that interest rates will remain low at least until the summer of 2020. Read more about this in this interest rate forecast for 2020.
The mortgage interest rate therefore remains low for a long time. Good news for everyone who is going to buy a house or want to lower their monthly costs. Start your mortgage application here.