Interest rates remain unchanged. Despite this, according to Jarosław Sadowski from rankomat.pl, mortgage loan installments are falling. The expert indicates how much and what is responsible for it.
In December, the Monetary Policy Council (MPC) left interest rates at the current level.
What about interest rates?
However, it seems that reduction of interest rates we will see in the first half of 2025.
– At least this is what the banks think, which jointly set the WIBOR 6M rate. This rate reflects expectations about what will happen to interest rates over the next 6 months. Until recently, its level remained stable and amounted to approximately 5.85 percent. However, from November it slowly started to decline. It is currently 5.78 percent, which is the lowest level this year and it is very likely that it will continue to decline, said Jarosław Sadowski, director of the analysis department of the rankomat.pl portal.
Sadowski notes that this decline translates into the interest rate on variable-rate mortgage loans. A decrease in WIBOR 6M will mean a slight reduction in the installment amount.
– In the case of a loan granted in December 2020, for the amount of PLN 400,000 for a period of 30 years, the installment will decrease from PLN 2,923 to PLN 2,903, i.e. by PLN 20. But this is just the beginning. Futures quotations indicate that in six months WIBOR 6M may be 4.97 percent. In such a case, the installment would drop to PLN 2,702, i.e. by PLN 201 compared to the current level – the expert calculated.
Installments on new loans have dropped significantly
In Sadowski's opinion, “we observe stronger declines in interest rates in the case of newly granted fixed-rate mortgage loans.” He pointed out that NBP data shows that the average fixed interest rate for already disbursed loans dropped from 7.87%. in July to 7.29 percent in October. As a result, the average loan installment decreased from PLN 2,899 to PLN 2,740, i.e. by PLN 159.
– It is also worth adding that the current offers are even better than in October. For example, fixed interest rate at high own contributionabove 20 percent, is: in Alior Bank 6.62 percent, in PKO BP 6.64 percent, in Velo Bank 6.79 percent, and in ING Bank Śląski 6.83 percent – the analyst said.
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