Forecasts for mortage interest rates for next 5 years ?

[alexandra123]

Hello ,

Just wondering if there is any information out their on what the predicted mortgage interest rates will be in the next 5 years.

I looked on line but can't find anything.

I was watching Vincent Brown the one night and one of the commentators mentioned that mortgage defaulting will reach it's peak in 2016...so I am just wondering what are we expecting to pay over the course of the next few years.


Thanks in advance

 

[WinWin]

Impossible to tell, the ECB have been very slow to increase rates for fear of stifling what little grow there is. Inflation is at 2.7% and had we not had a world recession, rates should be about 5% now (2.7% & rising, target is 2%).

If inflation stays around 3%, you could assume the ECB will want a base rate around 5%, meaning our own banks would be charging around 7-8%. If inflation rises further, the ECB will want its rate higher, so you can watch inflation to get an idea of were rates are heading.

No-one can tell you or even guess what will happen over the next 5 years, but its safe to say we'll get another .75% rise this year and maybe a 2% rise next year. I'm in a fixed rate at the moment until 2013 but i'm fully expecting to be paying around 8% when my fix rate ends.