Tuesday, September 26, 2023

Gonzalo Bernardos’ warning after the new increase in interest rates that affects the future of mortgages

The European Central Bank (ECB) announced another interest rate hike last Thursday in order to align them 4.5% and leave the turn signals on Highest values ​​not seen since 2001. This situation has a corresponding impact on the Euribor, which has been rising since the ECB began its increase policy to combat inflation.

The economist Gonzalo Bernardos, a regular on television talk shows, explained on the same afternoon on the La Sexta program “Más Vale Tarde” what impact the decision of the institution headed by Christine Lagarde could have.

Bernardos expressed confidence that this would be the last hike the ECB carries out. The television economist and professor at the University of Barcelona suggested three derived scenarios.

“We had the first one: we went from 4.25 to 4.5. Secondly, if there is no big surprise in the following months and the inflation situation falls significantly and quickly, We will have an interest rate of 4.5 “But with Euribor we will see a certain downward trend because the next expected move is downwards,” he emphasized when asked about the future situation.

Gonzalo Bernardos’ warning about the future of mortgages

Regarding the third scenario, Bernardos pointed out that by 2024 “the official interest rates of the European Central Bank will begin to decline.” When interest rates rise, Euribor – the indicator most variable rate mortgages refer to – usually follows the upward trend.

For this reason and for those who want to take out a new mortgage, the economist has sent a message: “Nobody should think that they will take out mortgages at 1 or 1.5% again like in 2022. These little guys are part of history and memory. “They were a gift from kings that some knew how to use and others did not.”

Different scenario for those who have a mortgage and those who are looking for one

Bernardos encouraged people who already have a mortgage to do so “Change mortgage”. In his opinion, many families refuse to fight because they think the situation will be reversed, but “they spend much more than they could pay if they had more information about how the financial market works.”

For those who continue to look for a mortgage, the economist is optimistic: “Banks are not issuing many mortgages and are not meeting the targets set at the beginning of the year, which means that in the.” In the last quarter you will find very good opportunities».

Nation World News Desk
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