I want to be careful here not get into the impact of interest rates on house prices / house price speculation.
Rather, I am keen to get peoples views on what an interest rate spike would do for housing supply.
It is widely expected that ECB rates will increases by 0.5% in 2022 and up to 2% by end 2023. The impact of this on Irish mortgage interest rates is not a sure thing given the high base we have relative to Europe. That said, I think it would be wise to expect rates to increase.
My view is that this will further reduce supply as those on low fixed rates will be incentivised to stay put and not trade up. I think this will exacerbate the housing crisis but nobody seems to be talking about it.
What do people think?
Rather, I am keen to get peoples views on what an interest rate spike would do for housing supply.
It is widely expected that ECB rates will increases by 0.5% in 2022 and up to 2% by end 2023. The impact of this on Irish mortgage interest rates is not a sure thing given the high base we have relative to Europe. That said, I think it would be wise to expect rates to increase.
My view is that this will further reduce supply as those on low fixed rates will be incentivised to stay put and not trade up. I think this will exacerbate the housing crisis but nobody seems to be talking about it.
What do people think?