Signing A Mortgage Under The Current Macroeconomic Context

29 May 2023 | Blog

The mortgage market is constantly evolving and understanding new trends is essential for those who seek funding to purchase property. This article explores the latest trends in the mortgage market, paying particular attention to different types of mortgages, technology tools that change the way in which they are managed, and how factors such as interest rates, inflation, and the monetary policy promoted by the European Central Bank (ECB) impact the sector.

Mortgage types

Different types of mortgages exist in today’s market designed to adapt to buyers’ needs. It is essential to understand the differences between fixed rate mortgages -which offer stable monthly instalments-, to variable rate mortgages -which fluctuate according to interest rates. New versions have also emerged, such as mixed mortgages, which combine features of both fixed and variable rate mortgages.

Mortgage market technology tools

Digitalisation has revolutionised the way in which mortgages are managed. Online platforms exist nowadays that allow to compare and apply for mortgages more efficiently. Furthermore, technology tools have been developed, like mortgage calculators, simulators, and mobile apps that provide users with instant access to relevant information and help them make informed decisions.

Interest rates and ECB monetary policy influence

Interest rates and ECB’s monetary policy have a significant impact on the mortgage market. Interest rates are low at present, which has allowed many buyers greater mortgage accessibility. Nevertheless, it is important to understand how changes in ECB’s monetary policy can affect interest rates in the long-term and how this can influence mortgage conditions.

Inflation and impact on mortgages

Inflation is another key factor to think about in the mortgage market. As inflation increases, interest rates can also be affected. For this reason it is important to analyse current macroeconomic trends, how inflation can influence mortgage prices, and what steps can be taken to protect ourselves from possible changes in the economic environment.