What would it take for the banks to get their interest rate down
Hi guys,
I'm 27y/o and would like to buy an appartement in the near future. My budget would be around 300k excl notary fees.
However, the biggest issue I'm facing is the interest rate nowadays, it's so god damn high...
I did some calculations and found out that if I were to buy an appartement before corona at 1,5% with a down payment of 50k, it would end up in a monthly payment of around 1k/25years. But with the current rate (4-4,5%), it leaves me at a monthly payment of 1500eur.
In retrospect, having a monthly payment of 1500 + 50k down payment at 1,5%, would result in me being able to pay off a 300k appartement in +-16years OR buy a 400k home/25years.
This limits my possibilities in purchasing a home a lot, and also leaves me with very little breathing room for saving and investing.
My question, and a big one that is: What would it take for the economy to make the interest rate go down, or will it only be going up from here?