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By Dr Karl KIRCHGESSER, Executive Vice President at FERNBACH Financial Software S.A. in Munsbach
Interest rates are going to turn around again! But if higher interest rates are the only remedy – what can builders, savers, and banks expect?
Builders who have previously relied on variable terms or are facing follow-up financing, will experience hard times. After mortgage rates have almost consistently been below 2% over the past 6 years, there is now a risk of a considerable extra burden from rising interest rates.
Currently, mortgage interest rates are exploding: since September last year, rates for ten-year mortgage loans have almost tripled. One of the reasons is the market’s expectation for the European Central Bank (ECB)...
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