The real estate industry expects that the central bank is likely to raise interest rates by half a yard at the end of the month. This year, the cumulative rate of interest rate hikes can reach two yards, or about 0.5%. Once the interest rate hike is confirmed at the end of the month, the mortgage interest rate will challenge the new high since 2016 and six years.

(Photo by reporter Xu Yiping)


[Reporter Xu Yiping/Taipei report] The central bank will hold a board of supervisors this week and is expected to raise interest rates for the third time in a row.

Real estate brokers asked their online members about the impact of interest rate hikes on home purchase intentions. 39% of the respondents believed that continuous interest rate hikes would reduce the home purchase budget, and 16% believed that the impact of interest rate hikes would be too great and would suspend home purchase plans, that is, more than half , A total of about 55% of the respondents believe that raising interest rates will affect the willingness to buy a house.

The new contract is estimated to jump from 1.86% to a new high in 6 and a half years

According to the estimation of the central bank's newly contracted mortgage interest rate, the new mortgage interest rate of the five major banks before the interest rate hike in March this year was 1.367%. 1 yard, the cumulative interest rate hike this year will reach 2 yards (0.5%), and the future mortgage interest rate will start from 1.86%. The last time the mortgage interest rate exceeded 1.85% can be recalled to January 2016.

Zeng Jingde, project manager of Xinyi Housing Real Estate Enterprise Research Office, said that after the violent interest rate hike in the United States, the real estate market has reversed and corrected, showing that a large interest rate hike will have a significant impact on the real estate market. Long-term low interest rates, coupled with the sharp rise in housing prices in recent years, have also increased and lengthened regardless of the loan amount or loan term. Therefore, in the face of this wave of interest rate hikes, whether it is psychological or purse burden will be relatively felt.

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However, Zeng Jingde also pointed out that even if the country enters a cycle of interest rate hikes, interest rates will always fluctuate in the long run. Perhaps there will be a crisis in a few years, and the trend of interest rate hikes will reverse again. It is recommended that homebuyers avoid excessive financial leverage and pre-trial interest rates. If it reaches 2%, will it affect the quality of life and avoid long-term dependence on the use of the grace period, even if the impact of interest rate hikes will be relatively limited.

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