Eurozone mortgage rates are rising sharply, raising the prospect of a slowdown in the housing market.
The cost of new loans to households for house purchases increased by 16 bps between May and June to 1.94%, according to European Central Bank data published on 2 August. Average rates are now 64 bps above the low of 1.3% registered last September – the largest increase in borrowing costs over a nine-month period since 2006.
Mortgage rates are rising across advanced economies as central banks supersize rate rises in a bid to control inflation.
