Rising mortgage rates put heavy pressure on house prices
As a result of skyrocketing inflation, the European Central Bank (ECB) has raised refinancing rates several times, which has also caused mortgage rates in the Netherlands to triple in the past three quarters. These sharply rising mortgage rates directly affect households' borrowing capacity. In addition, it puts indirectly pressure on consumer confidence in the general economy and in the owner-occupied housing market. A drop in the purchase price like in the third quarter of 2022 is logical in such a situation, even if the number of homes sold still remains fairly constant.
Read the full article here in Dutch.