yes but the real return on property/other assets is also lower by that same inflation amount.demoivre said:Latest inflation figures show prices rising at 3.8% per annum so the real cost of funds is much lower than is implied by the rates quoted above.
FYI the market expects the ECB rates to hit 3.25% by the end of this year, but head back down to 2.75% by the end of 2007.bearishbull said:ecb rates are going to be at least 3.5% in one year and mortgage rates will be over 4.5%
brian1 said:but head back down to 2.75% by the end of 2007.
Newbie! said:We are in a position whereby we have to take a 95% mortgage and the rate offered for 2years fixed is 4.39%. Is that really high? I dont tihnk we have any huge choice right now though.
my friend in treasury department of a large bank just checked rates for mebrian1 said:FYI the market expects the ECB rates to hit 3.25% by the end of this year, but head back down to 2.75% by the end of 2007.
There is even some doubt about 3.25% as Germany is giving off some very mixed signals about the health of it's economy and recovery.
The banks wouldn't offer 3 year fixed rates between 3.95% and 4.75% if they thought that mortgage rates were going to be over 4.5% for most of this period.
Of course all the predictions is just guess work by the financil people. Do what is most comfortable for yourself but do shop around.
ClubMan said:On the other hand nobody, not even the treasury departments of large banks, can predict the future with any accuracy.
The treasury departments dont predict the future,these rates are what the market as a whole expects, of course things change but based on all info in market at present this is best estimate of future rates.ClubMan said:On the other hand nobody, not even the treasury departments of large banks, can predict the future with any accuracy.
CCOVICH said:Did you take the time to look at any of the links I posted earlier?
Do you have to take a fixed rate? I doubt it.
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