Mortgage Market Trend Outlook 2011

It’s a new year and we have a new set of predictions for the Irish mortgage market in 2011. In our report (get it here or click on the image) we go through them in detail (bullet points below) and we also review our forecast for 2010 to see just how inaccurate we were on the calls we made for last year.

In our report this year the main areas are:

1.Banks will push up interest rates by another 100bps or 1% (independent of any move by the ECB) costing the average borrower (loan of €200k over 25yrs) an additional €1,280 p.a. Rate hikes may start as early as this month. 2. Variable interest rates will generally start to rest at or north of 5% by 2012. The state controlled banks in particular will be forced to make some painful decisions on interest rates they charge to customers. 3. Fixed rates may be temporarily removed from the market, offered on a limited basis or priced out …

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