interest rates not to rise much further

Of interest to those looking at fixing rates, I was reading a fairly comprehensive US report that suggests that euro interest rates may only rise by another half percent before settling. Tje reason is the bailouts and austerity measures in bigger countries will slow growth overall and lessen inflationary pressures.

I'm no expert, but its something to consider when looking at the 3/5 year crystal ball.

Would love that to be the case - just about to start a 5 year fixed rate of 3.7%, it would be great not to move to an 8% variable at the end of that.

Where are you getting a rate like that, pray tell, and do you have an LTV < 20%?

It's PTSB 50% LTV, 5 years, 3.7%

Thanks, I see that now on their website.

That's a pretty good rate.

Back to the OP, I think it's hilarious the way so many people these days seem to consider themselves some kind of economics guru savant regarding the ECB rate. I gave up Economics in school after one year, and even I can see that it makes no sense for the ECB to continue to push up the interest rate when many of the member states are on their knees ....

The certainty with which commentators predict this apparently inevitable rise and rise of the rate seems pretty irresponsible to me. Nobody knows what's going to happen tomorrow. That's kind of what got us in this mess in the first place isn't it?

Manuel said:

Thanks, I see that now on their website.

That's a pretty good rate.

Back to the OP, I think it's hilarious the way so many people these days seem to consider themselves some kind of economics guru savant regarding the ECB rate. I gave up Economics in school after one year, and even I can see that it makes no sense for the ECB to continue to push up the interest rate when many of the member states are on their knees ....

Click to expand...

Tell that to the banks who have raised variable rates independently of the ECB in recent months !!

demoivre said:

Tell that to the banks who have raised variable rates independently of the ECB in recent months !!

Click to expand...

I still think that your standard variable mortgage rates are quite good. Rates on a good risk profile are still usually significantly below 5%.
(Try to get a personal loan - you can't find anything below 10%!)

I think people are only upset by any rate raises because they are used to ridiculous and unsustainable low rates! I remember taking a car loan in 2006 - only reason I took the loan and not paying cash was becuase I paid less for the loan than i got interest on the savings account.
Can't remember anyone complaining then about unsustainable business models...

Great news mcaul.

newirishman said:

I still think that your standard variable mortgage rates are quite good.

Click to expand...

We recently came across all our mortgage docs from when we purchased our current home, just over 10 years ago the variable rate we were paying was 6.85%. I never realised it had been that high.