Real estate news | Online mortgages: rates rise, payments up to 400 euros | Real Estate Monitor

The threat of another mortgage rate hike in the near future is real if the European Central Bank (ECB) decides at its October 26 board meeting to respond to the new international conflict in the Middle East and the subsequent rise in some commodity prices with additional interest rate hikes.

Some analysts are confident that the cost of money will remain at current levels, but it is possible that the Eurotower Board may consider intervention necessary. If this happens, and indeed if the ECB decides to raise rates by 25 basis points, mortgage rates will also rise significantly.

MutuiOnline.it estimates that those with variable rate financing of €160,000 for 20 years will increase from the current €1,037 to €1,057, €20 more than today and €363 more (+ 52.3%) than in January 2022. The increase will be even more significant for terms of 30 years where, also for mortgages of €160,000, the payment will increase from the current €838 to €860, i.e. €388 more than in January 2022 (+ 82.2%).

Nicoletta Papucci, marketing director of MutuiOnline.it: 'We hope that the ECB will be consistent with what was announced in September and decide to stop the increases, but it is possible that the economic situation in Europe and beyond, as well as recent geopolitical events, will force Christine Lagarde to take a different decision.