February 5, 2023

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Mortgages, after ECB tightening, interest rate risk at 6%

new Warning on the economy through the tightening decided by the European Central Bank. It directly affects the pockets of Italians or at least many of those who signed up Mutual.
With the cost of borrowing increasing by half a percentage point to 2.5%, in fact, theThe horizon of 6% interest on installments seems closer than ever. This is indicated by an analysis conducted by Fabi.

After months of hikes and variable mortgages approaching sustainability, the latest pressure by the European Central Bank at the end of 2022 has turned into a burden and a long overdue burden, which Frankfurt is passing on to European citizens and is tracking an important step to confirm – in the very short term – the trajectory of the cost of loans on Specifically towards the 6% threshold, the Bankers Union confirms.
Moreover, “if rates averaged at around 3.2% in October, when the cost of money was 2%, in the market — the syndicate reports — some brokers are already offering mortgages with interest above 5%.

So “The European Central Bank’s decision will raise interest rates on household mortgages, except for those with a fixed interest rate, already contracted with the banks. However, Italian families must not give up their lifelong dream of buying a home, because when interest rates fall and become more favorable, it will be possible to pay off the old mortgage with a new, more advantageous one, “reassures Fabi’s Secretary General, Lando Maria Cilioni.

«For young people who want to buy a home – And he adds – it is necessary for the government to economically strengthen the State Guarantee Fund ”. Over the past five years, according to this analysis, mortgage loans increased by 46.1 billion (+12.2%) from 379.1 billion to 425.2 billion, and consumer credit by 11.9 billion (+11.7%) from 102.5 billion to 114.4 billion while loans fell the other by about 4.1 billion (-2.9%), from 144.7 billion to 140.5 billion ».

regarding Business, in the same period there was an overall double-digit decrease in loans equal to 11.4 billion (1.7%) from 678.5 billion to 667 billion. It highlights that this decrease “is mainly related to the component of short-term loans amounting to 65.8 billion (-30.3%). The decline did not compensate for the growth recorded in loans over 5 years, which increased by 59.39 billion (19.9%). With regard to medium-term loans ( up to 5 years), the cut was more limited but resulted in a contraction of 4.9 billion (-3.0%).”