Expert after a fall in interest rates: What does it mean for homeowners

once again, The European central Bank (ECB) decided to lower the deposit rates. This time from minus 0.4 to minus 0.5. And it confirms what experts in recent mo

Expert after a fall in interest rates: What does it mean for homeowners

once again, The European central Bank (ECB) decided to lower the deposit rates. This time from minus 0.4 to minus 0.5. And it confirms what experts in recent mo

Ann McDonald
Ann McDonald
13 September 2019 Friday 05:01
14 Reads
Expert after a fall in interest rates: What does it mean for homeowners

once again, The European central Bank (ECB) decided to lower the deposit rates. This time from minus 0.4 to minus 0.5. And it confirms what experts in recent months have pointed to.

The low interest rates are here to stay - at least for a good while yet, " explains Christian Hilligsøe Heinig, chief economist at Realkredit Danmark to Ekstra Bladet.

See also: ECB lowers interest rates to minus 0.5 percent

- It confirms, in essence, to the very low interest rates persist, and perhaps even to fall further.

the chief competition economist believes, however, in the first place not to rentesænkningen get the big effect on the Danish mortgage bonds.

- No, the financial markets is by its nature forward-looking, so you could say that some of the trends we have seen in the recent past has already taken account of today's announcement from The European central Bank (ECB).

- It was expected that they would put the interest rate down, so on the way had it had a greater effect if they had put the interest rates down.

Overall, however, no signs in the sun and the moon other than the current interest rates

- Many factors play into the development - in addition to the ECB f.ex. the relationship between Trump and China. However, they have recently moved much closer to each other a little, and it gives a little optimism in the financial markets - an optimism that has influenced the exchange rate on the fixed rate loan so it has actually fallen over the past week.

- But we see also that a single tweet from Trump can affect the markets, so it is pure speculation to say anything about what is going to happen.

Danish homeowners who either need to take new loan, or going with thinking about to convert, therefore, must not squint too much to today's announcement from the ECB, believes Christian Hilligsøe Heinig.

- In essence I know not, after all, what happens. So therefore, one must relate to the courses and the interest, that is, when you need to record the loan.

- But there are also other factors than the interest rate, you need to consider when you need to take out a mortgage. Maturity, no amortization, it must be fixed-rate or variable, etc.

So we are not it, where a 0-procentslån is imminent?

- No, not on the basis of the announcements about the rate cut today. We are still a ways off. But as I said, it is incredibly difficult to foretell. My best advice is that you relate to the interest, that is pt. And so do the gains and the costs up.

That means low interest rates for Danish homeowners

The European Central bank interest rate among other things, the impact on the economy of Danish homeowners. The European central Bank (ECB) has on Thursday lowered its deposit rate by 10 basis points. It means that it is now at minus 0.5 percent.

Here you can read more about what is the interest rate in the ECB could mean for you:

* Low interest rates in Europe will ensure low boligrenter.

* Under normal circumstances follows the national Bank in Denmark renteændringerne of the ECB, because the Danish krone is tied in a fixed parity to the euro.

* the ECB yesterday after an inflation rate of barely two percent. The ECB put interest rates down in order to get inflation up.

* Is inflation too low, consumers will hold back, and the investments stop, when the expectation of even lower prices to keep consumption in check. Why buy today when you can get it cheaper tomorrow?

* A rate cut could weaken the euro, so the exchange rate of the euro is not too strong compared to the dollar.

* A weaker euro would make goods from eurozone countries cheaper abroad, boosting exports and thus growth.

* When the growth comes up in the gear, consumers will spend more money, and inflation will rise, is the goal.

* A weaker euro, in turn, can make it more expensive to buy goods in the UNITED states and more expensive to refuel the car, as the price of oil settled in dollars.

Updated: 13.09.2019 05:01
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