The average rate on new mortgage loans to households remains stable at3.44% in August, unchanged from the previous month when it had reached a 19-month low. The average rate on new business financing operations fell, to 5.07% from 5.27% in July. This is stated in the monthly report of theAbi specifying that, in general, the trend of falling market rates is continuing.
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The deputy general manager of ABI, Gianfranco Torriero, explained that “the decline in market rates continues, which have now essentially registered a continuous reduction since October-November, which has been more noticeable on long-term rates and more contained on short-term rates such as the 3-month Euribor, but in recent days we have reached new lows”. The rate on mortgages that remains stable in August can therefore be explained by the recovery of variable-rate mortgages, because there are those who are starting to bet on rates that will fall in the future, Torriero said. Furthermore, August is a month with few transactions, he added.
In the first 11 days of September, the 3-month Euribor rate averaged 3.46% (3.55% the average in August), down 54 basis points compared to the maximum value recorded in October 2023. The 10-year Irs rate (widely used in mortgages) averaged 2.45% (2.50% in August), down 107 basis points compared to the maximum value in October 2023.
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– How do stable mortgage rates at 3.44% affect potential homebuyers?
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Mortgage Rates Hold Steady at 3.44% in August, Business Financing Rates Dip
The latest report from the Associatzione Bancaria Italiana (ABI) reveals that the average rate on new mortgage loans to households has remained stable at 3.44% in August, unchanged from the previous month’s 19-month low. This steady rate is a result of the recovery of variable-rate mortgages, signaling a continued trend of falling market rates.
Falling Market Rates Benefit Borrowers
According to the ABI report, the average rate on new business financing operations has decreased to 5.07% from 5.27% in July, marking a positive trend for businesses seeking financing. This drop in rates is attributed to the decline in market rates, which have been consistently decreasing since October-November last year. The deputy general manager of ABI, Gianfranco Torriero, explained that “the decline in market rates continues, which have now essentially registered a continuous reduction since October-November, which has been more noticeable on long-term rates and more contained on short-term rates such as the 3-month Euribor.”
Impact on Mortgages and Borrowers
The stability of mortgage rates at 3.44% is a welcome respite for households seeking to purchase or refinance their homes. This rate, which has remained unchanged from the previous month, translates to significant savings for borrowers. In fact, according to ANSA Agency, a rate cut of up to 70 thousand euros less for a 25-year mortgage is possible. This reduction in debt costs, combined with lower interest rates on deposits and bond coupons, makes borrowing more affordable and attractive.
What Does This Mean for the Economy?
The continued decline in market rates and the stability of mortgage rates have significant implications for the economy. With borrowing becoming more affordable, households and businesses are more likely to invest in new projects, purchase homes, and expand their operations. This increased spending and investment can stimulate economic growth, create jobs, and boost consumer confidence.
Expert Insights
Gianfranco Torriero, deputy general manager of ABI, emphasized that “in recent days, we have reached new lows” in terms of market rates. This suggests that the trend of falling rates is likely to continue, providing further benefits to borrowers and the economy as a whole.
Conclusion
the stability of mortgage rates at 3.44% and the decline in business financing rates are positive developments for households and businesses seeking financing. The continued decline in market rates, coupled with the recovery of variable-rate mortgages, signals a favorable trend for borrowers and the economy. As the trend of falling rates is expected to continue, it’s an opportune time for individuals and businesses to explore their financing options and take advantage of the lower costs of borrowing.
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H1: Mortgage Rates Hold Steady at 3.44% in August, Business Financing Rates Dip
H2: Falling Market Rates Benefit Borrowers
H2: Impact on Mortgages and Borrowers
H2: What Does This Mean for the Economy?
H2: Expert Insights
H2: Conclusion
– What factors contribute to the stability of mortgage rates at 3.44% in August?
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Mortgage Rates Hold Steady at 3.44% in August, Business Financing Rates Dip
The latest report from the Associatzione Bancaria Italiana (ABI) reveals that the average rate on new mortgage loans to households has remained stable at 3.44% in August, unchanged from the previous month’s 19-month low. This steady rate is a result of the