tag:blogger.com,1999:blog-8492416005551532574.post9112673026840766190..comments2024-01-09T08:21:38.158+02:00Comments on Finnish Housing Bubble Bursting - Asuntokupla: ...Next the ECB rate increase?HousingFinlandhttp://www.blogger.com/profile/11208457813231210207noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8492416005551532574.post-67372521316854534362009-10-29T21:59:31.177+02:002009-10-29T21:59:31.177+02:00It really depends in fact.
If there is a recovery...It really depends in fact.<br /><br />If there is a recovery and the economy is back to moderate growth...the ECB will start to review its interest rates policy. Should that recovery confirmed (Which I don't believe) then interest rates could rise as early as mid next year from 1% to 1.75% at first...and more to follow that will ensure a sharp correction in the housing market as most mortgage rate are linked to variable rates (cheapest available now).<br /><br />On the other hand, if the recovery is not coming then the situation will be really bad as government will have shoot all their bullets and will have taken massive amount of debt and guaranty (one will have to pay for that)...so if it is not coming then you have an economical "doom" with a stock market and housing market sharp correction (which I think will happen).<br /><br />So the housing market is most probably in a double "doom" configuration whatever happen...hence the danger to buy now.<br /><br />So indeed the situation is very worrying in Finland whatever the media are saying (please refer to my next article also for the media thinf ;-> ...)HousingFinlandhttps://www.blogger.com/profile/11208457813231210207noreply@blogger.comtag:blogger.com,1999:blog-8492416005551532574.post-29008479872294772662009-10-29T14:02:05.901+02:002009-10-29T14:02:05.901+02:00The Euribor 12 month has had a tiny little bounce ...The Euribor 12 month has had a tiny little bounce in October, but it was so small that it does seem that the market is expecting an increase soon. ie. it is around 1,25% where it almost hit 1,7% in July. <br /><br />I expect the rates to rise, but have no idea as to when, but it doesn't look as if it will be in the next few months.<br /><br />"Island Crow"Anonymousnoreply@blogger.com