The year 2012 is almost over. Late December is traditionally the time to look back on the year behind us. Pearl puts together an overview of various interest rate developments.
Interest rate development – Revolving credit
The interest rate revolving credit has shown little spectacular in the past year. There was a slight increase in mid-June. Around October, interest rates fell to about the same arrow as at the start of the year. Borrowing money in October was therefore possible at the same interest rate as in January.
Whereas interest rates on a revolving credit have had a reasonably stable year, savings rates have fallen sharply in the past year. More about the savings interest rates of 2012 and the expectations for 2013 can be found under ‘Savings interest expectation 2013’.
In contrast, the 3-month Euribor, the rate at which banks grant each other loans, fell sharply in 2012. Where a rate of 1,343 was recorded in January, it had fallen to 0.19 in December.
The fall in 3-month Euribor has had no impact on the interest on the revolving credit. Due to the uncertainty on the financial markets, most banks are not ready to lend money. Because lenders have been charging high margins on top of market rates for some time, they are not forced to increase them either.
Mortgage interest rate 2012
The variable mortgage interest rate continued the upward trend of last year in January 2012. This shows an inventory of the mortgage rates carried out by Pearl. In January of this year, the average variable interest rate on an interest-only mortgage was 3.65 percent, also the highest rate this year. The variable interest rate fell slightly each month from January onwards, reaching 3.22 percent in December.
The average 5-year fixed-rate mortgage interest rate showed a downward trend until May of this year. This interest rate rose slightly in mid-July (to 4.09 percent). In the remainder of the year, the trend was fairly stable and in December it averaged 4.1.
10-year fixed-rate mortgage rate
The 10-year fixed-rate mortgage rate had a fairly stable year, with a slight outperformance down in May. The rate on a 10-year government loan, on the other hand, experienced a somewhat grim course. The capital market interest rate started the year at 2.24 and fell sharply in June (to 1.56). In July it was just above 2.0, before falling to a level of 1.59 in December.
Because the crisis is expected to continue in the coming year, experts expect that interest rates for mortgages with a long fixed-rate period will fall (slightly) further in the coming period.
Mortgage interest rates for 20 years also had little to do with fluctuations this year. In January it was still at an average rate of 5.80 percent, in December it was 5.79 percent.