MILANO – The decline in interest rates continues mortgages. With the first rate cut by the ECB on the horizon, expected in June, the cost of financing for the purchase of homes continues on its downward trajectory. This is also confirmed by the data released yesterday byAbi in your monthly report.
ECB, with cuts on the way, mortgage repayments are falling. Fixed rates remain more advantageous, for variable rates expected from June by the Economy editorial team 11 April 2024
The average rate on new transactions for the purchase of homes decreased to 3.79% from 3.89% in February and compared to 4.42% in December 2023. The average rate on new transactions for housing also fell business financing, decreased to 5.26% from 5.34% in February 2024 and from 5.45% in December 2023; the average rate on total loans (therefore subscribed over the years) fell to 4.79% from 4.80% in the previous month. The Report also records a drop in market rates in the first 10 days of April, confirming that the trend is destined to continue in the coming weeks.
The high rents continue, due to the “forced” demand of those who cannot buy a house. The picture in the cities by the Economia editorial team 11 April 2024
In fact, in the first 10 days of the current month the rate on BTPs was on average 3.78%, a decrease of 121 points compared to the maximum recorded in October 2023 and the 10-year IRS rate (widely used in mortgages) was on average 2.68%, down 84 points compared to the high recorded in October 2023. The rate on six-month BOTs averaged 3.67%, down 38 points compared to the high recorded in October 2023 while the 3-month Euribor averaged 3.89%, down 11 points compared to the high recorded in October 2023.