The end of money at (almost) zero cost
useless to go around it. Something broke in the mechanism of the endless low (or very low) rates that the financial and credit markets have accustomed us to in the last 5-7 years. Negative rates on short-term securities, 0.5% floating rate mortgages and below 1% fixed rate mortgages may soon be just a memory.
But there is no need to despair. It is true that central banks have changed (the Fed decided a few days ago to decrease the volume of purchases of securities on the market) or are about to change (the ECB to suspend the anti-pandemic plan (Pepp) in March 2022) the monetary policy that has made it possible to keep interest rates at a level close to (or below) zero.
However, the change, which has already begun, will be slow and gradual and will give savers and investors time to readjust smoothly to a return to normalcy. But what scenarios lie ahead for mortgage loans and the real estate market? Which solution to choose for those who want to buy a new home among the offers of fixed and variable rate mortgages? Let’s see it in detail.
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