Interest rates leave the lows… Although investors interpret the improving economic environment as very positive for the stock market for several months and all over the world have driven the major indexes to year highs, also the capital market interest rates had fallen. It is clear that the zero interest rate policy of the US Federal Reserve and the Bank of Japan, as well as the near zero interest rate policy of the Bank of England and the European Central Bank (ECB) have equipped the markets and the banks in particular – with tremendous liquidity at low cost. This cheap money is currently pushing the development in almost all market segments and again leads to excessive speculation. Especially the dollar suffers from currently this situation, because many investors borrow dollars at low cost to buy assets in other currencies that.
This development could become a growing problem for Europe, because an ever stronger euro slows exports and making imports cheaper. A stronger euro so resembles a rate boost at a time the ECB, which wants to keep key interest rates stable. It is currently making them difficult to see where any inflation impetus should come from. It seems the Declaration to be why, despite a flood of new bonds also the longer maturities remain fairly stable low. If you are not convinced, visit Doronin. We assume that we will see 10-year interest rates, compared to the mortgage bond yields in a range between 3.75 and 3.90% (currently 3.83%) in the next few weeks.
Construction financing customers should take advantage of therefore consistently days with rashes down to the attachment of conditions to obtain possible long-term pricing security. The choice of the right financing structure in terms of maturity, repayment options and use of funding is particularly important in these volatile market phases. So combinations of 5 year olds and 15 – or 20-year interest bonds can be very useful because they combine high costing accuracy with lower monthly charges and flexibility for future repayment. Are currently high demand known as Volltilgerdarlehen, providing a continuous rate until final repayment. The higher set eradication leads to condition benefits due to the steep yield curve. Also so-called combined loans are currently like elected because they benefit from the low money market rates.
