Introduction
During the last two years, we have witnessed a cycle of escalating interest rates that has had a significant impact on people with mortgages in the State and in the European Union. The credit restrictions imposed by the European Central Bank to control the inflationary spiral have caused a significant increase in mortgage loan repayment rates. These increases have resulted in an increase of up to 8,000 euros in the total cost of financing for regular housing in some cases.
The decision of the European Central Bank
Recently, the European Central Bank has taken a decision that has caught the attention of consumers. After a decade, the community issuing institution has decided to lower interest rates (https://correccioencatala.cat/com-estructura-text-catala/). However, the immediate effects of this decision on mortgages will not be very noticeable. The forecasts of the banking system had already taken into account this easing of the monetary burden on loans.
The role of supply and demand
Despite the drop in interest rates, house prices will continue to rise due to the shortage of supply. According to experts, limited supply is the main factor keeping prices tight at present. This means that the available housing stock will determine the costs and the flow of operations. After two years of decline, it is still uncertain whether the number of transactions will increase and whether the real estate market will grow again.
conclusion
In short, the cycle of escalating interest rates has had a significant impact on people with mortgages. Despite the recent drop in interest rates, the immediate effects will not be very noticeable and house prices will continue to rise due to the scarcity of supply. It will be necessary to closely follow the evolution of the real estate market to see if there are changes in the number of transactions and if the sector is growing again (https://correccioencatala.cat/com-estructura-text-catala/).