The ECB has cut interest rates by 0.25% to 4.25% on June 6, 2024. This reduction had been anticipated and widely discussed in the media, leading many potential borrowers to consider delaying their mortgage financing in hopes of benefiting from falling rates. But is it really wise to wait for lower mortgage rates?
I must admit, I don't have a crystal ball. However, it’s important to understand that the short-term ECB rate generally does not directly affect the interest rates for 10-year fixed mortgages. These are more closely tied to the long-term capital market rates than to short-term interest rates. So, if you’ve found your dream property, it might be risky to speculate on rate decreases.
Of course, each bank refinances differently, and their individual business policies also play a significant role in the rates offered.
