The average rate in US home sales has dropped by a whopping 17.3% from the same month a year ago.But that hasn't stopped the number of people who are on a mortgage rising.In the US, home buyers now account for nearly half of all new home sales, up from 44% in January.The number of homes sold has also increased by a staggering 9.3%.In Australia, home sales have jumped by 8.5% from January.That's a ...
RTE’s finance correspondent Simon Coveney has the latest on the latest forecasts and predictions for mortgage rates across the globe.RTE’s mortgage rate forecasts are based on the most recent data available from the Bank of England, the Royal Bank of Scotland, and the European Central Bank.
In a commentary, RTE Economics editor Richard Waugh says the Bank’s forecast for house prices in Ireland has fallen to its lowest point since 2010.
“With the Irish economy growing by only 2.2pc in the third quarter, there are only two options for households in Ireland: stay in and lose the housing they already have or buy new homes,” he writes.
The bank’s forecasts also point to a further slowdown in demand from the eurozone, with Germany expected to post the weakest economic growth since the global financial crisis.
The Irish Central Bank expects the Irish market to remain depressed for a number of years to come.
“The current outlook suggests that there may be little or no economic growth in the Irish private sector for several years to arrive,” it says.
The RTE analysis also finds that interest rates will remain low for many years to follow.
“Inflationary pressures are likely to remain subdued, with nominal wage growth still likely to be below its trend, but inflation expectations will remain relatively low,” it writes.
“Given that the current outlook is of modest downside risks, there is a limited downside risk for households from further rises in interest rates.”
The Bank of Ireland has said it expects the eurozone economy to grow at its current pace of 2.1pc in 2017, and that it is also expecting the country’s unemployment rate to remain low.