Market Information Wednesday 28 August 2024

Mortgage rates in the Netherlands are decreasing this summer, especially for longer fixed-rate periods. Rates for five-year fixed terms have not yet reached their lowest point. It is expected that rates will drop further if central banks lower their rates in coming months. In 2022, rates rose sharply due to inflation and central bank interest rate hikes, but rates have been declining, leading to an increase in mortgage applications.

Consumer confidence in the U.S. economy improved in August, with the confidence index rising from 101.9 in July to 103.3. Expectations for the next six months also increased, with the expectations index rising from 81.1 to 82.5, indicating that the chances of a recession within a year are decreasing. The assessment of the current situation also improved, from 133.1 to 134.4.

The British pound reached its highest level since March 2022 against the dollar on Tuesday, rising to $1.33, partly due to expectations that the Bank of England will lower interest rates less aggressively than the U.S. Federal Reserve. The pound is also gaining value against the euro, currently around €1.19. The U.S. dollar is losing ground due to anticipated interest rate cuts in the U.S.

The 6M Euribor increased with 2 basis points to 3.40% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.53% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.