Trump increases real estate loans interest in Belgium

Despite the interest rate reductions of the European Central Bank (ECB), the price of a mortgage increased during the past year. Nevertheless, Thus, the interest rate for a trump increases real estate loans new fixed residential loan of 25 years has been at its highest level since December 2023. Furthermore, President Donald Trump is partly responsible trump increases real estate loans for this remarkable increase.

Main information – Trump increases real estate loans – Trump increases real estate loans new

• ECB’s interest rate. Consequently, reductions cannot prevent us from paying a more expensive mortgage today than a year. Therefore, a half ago.
• Indeed, long -term interest rates are increasing. In addition, Investors fear in particular that Trump’s trade war will relaunch inflation.
• Those who opt for an annually revisable formula have also seen the price increase in recent months.

In the news : Whoever contracts today a fixed rate residential loan over 25 years. borrows up to 80 percent of the purchase value will pay an interest rate of 3.48 percent on average, according to the trump increases real estate loans new barometer of interest rates of the broker in Credit Immotheker Finotheker. It is the highest level since December 2023.

• The increase in interest rates is explained by the fact that the ECB has reduced trump increases. real estate loans its guiding. rates to a rapid rate in the last 12 months. For example, the key rate has dropped from 200 base points to 2 percent since June 2024. It is the lowest level since December 2022.
• This relaxation of monetary policy has mainly had an impact on savings rates. To calculate mortgage rates, lenders are based on long -term rates. However, the latter keep increasing. In Belgium, for example, the 10 -year interest rate oscillates around 3.2 percent. At the start of this year, it was still less than 3 percent.

Trump impact on real estate loans

Verdict : Interest rates to ten years have increased in trump increases real estate loans new the past. six months due to fears of a resumption of inflation due to the trade conflict with the United States. This is what John Romain of Immotheker Finotheker says in reaction to De Tijd.

• The debt of the trump increases real estate loans Belgian government’s debt also has an impact on. interest rates at 10 years. “The debt. budget deficits of the Member States increase bond yields,” said Jonathan Frisch, economist at Imoweb recently to our site. “The increase in defense spending in European countries also contributes to the increase in debt.
• Furthermore. it should not be forgotten that the Fitch rating agency recently lowered the credit note from our country of. Aa- à A+ (the worst note ever allocated to the country). This decision reflects the growing market concerns about the viability of public finances. In this case. investors require higher remuneration for the money they trump increases real estate loans new lend to the state. which leads to an increase in long -term interest rates.

The price of variable loans also increases

And also this : The formulas revisable annually. which are linked to short -term interest rates, have also become more expensive since April. However, trump increases real estate loans this rate is influenced (directly) by the ECB policy on interest rate. The starting rate of a variable loan at 25 years with an annually revisable rate is currently 3.4 percent, compared to 2.95 percent in March.

• Economists believe that the price of loans at revisable rate annually should remain stable for a while. This is explained by the fact that the ECB briefly suspended rate reductions at the beginning of the month.
• The monetary institution should maintain interest rates for 2 percent for a while. “Now that the European Union has concluded a trade agreement with trump increases real estate loans new the United States. there are fewer reasons to further reduce interest rates,” wrote Mark Wall, chief economist of Deutsche Bank, in an analysis. “A new drop is of course always possible, but it is no longer part of our basic scenario. »»