19 August 2019
Here’s what happens with the rates in the world:
U.S.
The average 30-year mortgage rate here reached 3.6%, which is the lowest number since November 2016. A higher demand for properties has led to a total mortgage debt of US$9.41 trillion in the second quarter of this year, outpacing the previous peak of the 2008 financial crisis. In addition to it, mortgage brokers also strive to satisfy the demand for refinancing, as the number of applications is at the highest level in 3 years.
France
According to the Bank of France, the average mortgage rate was 1.39% in June.
Germany
Here, mortgage rates are also at the historic lows in 2019, as the average 10-year loan is 1%. Moreover, certain lender can offer you even a 0.5% rate, Interhyp says.
U.K.
In the U.K., mortgage rates remained almost flat, in spite of the decline in overall borrowing costs caused by a more pessimistic economic picture. A two-year fixed mortgage rate was down by only 0.08% from January to July, while the two-years swaps fell by 0.38% during the same period.
Greece
Meanwhile, Greece saw rate hikes amid sovereign and corporate debts. The average variable rate here was up by 0.11% annually to 3.08% in June.
A large number of soured loans at Greek banks means they are very suspicious now when it comes to providing new loans, even if they are backed up by real estate.
Japan
The policy of negative rates which the Bank of Japan has been showing, supports the housing affordability. You can get a 10-year fixed-rate mortgage at 0.65% on average, while Sumitomo Mitsui Trust Bank offers loans at 0.53%.
As a result, Japan saw an increase in home sales and prices in the larger cities, following years of decreases after the market bubble burst in 1991.
Australia
Australian mortgage rates were down by 0.40% after the central bank’s several rate cuts in June and July. Now, the average variable rate at the big four banks is 4.94%.
Mortgage rate drops combined with an easing of lending rules and the unexpected re-election of the center-right government have led to a higher activity at the national real estate market. After two years of declines, home prices in Sydney have been growing during the previous two months.