During the first wave of the pandemic, the mortgage market reacted very nervously, writes Comparis in a statement on the current mortgage barometer of the online comparison service. The interest rates for ten-year fixed-rate mortgages rose from 0.98 to just under 1.20 percent towards the end of the first quarter of 2020, it said. The second wave of the pandemic, on the other hand, “has left the mortgage market cold so far,” says Comparis financial expert Frédéric Papp as quoted in the press release.
According to the Comparis surveys, interest rates for fixed-rate mortgages with a ten-year term were between 1.04 and 1.07 percent in the last quarter of 2020. The interest rates for fixed-rate mortgages with a five- and two-year term remained constant over the quarter under review at 0.90 and 0.86 percent, respectively.
Specifically negotiated mortgages usually had significantly lower interest rates than these target rates, explains Comparis in the press release. The company HypoPlus, which belongs to the Comparis Group, offers ten-year fixed-rate mortgages from an interest rate of 0.61 percent. In the coming months, "more dynamism can be expected in the mortgage market," predicts Papp. He assumes that competition among providers will intensify in favor of mortgage borrowers.
