Mortgages, rates start to rise but for experts they are still affordable

The real estate market returns to pre-Covid levels, in terms of both sales and prices, driven by massive demand. Nicoletta Papucci, of, explains to Sky TG24 Business why it is still advantageous to apply for a mortgage at this time. VIDEO

More than three million families want to move or beautify the current one. The latest report by the consulting firm Nomisma photographs the recovery of the brick in Italy, which took place both on the side of the sales (which will reach 738 thousand units in 2024, compared to the 650 thousand prior to the pandemic) and on that of prices (in 2021 the increase average expected is 1.8%).

A recovery that also passes through the disbursement of mortgages, which in 2021 should reach 60.8 billion and in 2024 60.3. In this scenario, how convenient is it to request one? Nicoletta Papucci, by, explains to Sky TG24 Business how “this is still a good time to do it. In fact, if we look at mortgage rates, despite being slightly up” due to the possible increase in central bank rates “they are still absolutely excellent and much lower than we had a couple of years ago. In October, the average rates for 20 and 30 year mortgages stood at 1.15%, which we must compare with 1.53 % in 2019, therefore significantly lower. Variable rates, on the other hand, have been overall stable since the beginning of the year and amounted to 0.76% “. In particular, Papucci continues, it is better to opt for the fixed rate, that is, the one that does not change whatever happens in the market: “When the fixed rate is below 2%, it is excellent and given that, as we have seen, the rates are so low , it’s convenient”. Not surprisingly, “90% of the requests on our site are for a fixed rate”.

The choice of the house, Nomisma observes, mostly falls on peripheral areas or far from the urban center, a figure in line with the suburbanization trend that has affected the real estate market in recent years. Two trends lead the recovery of the brick: the desire to improve one’s home after the problems encountered in the home during lockdown (there is a strong demand for gardens, balconies and larger spaces) and the renewed interest of young people (18-34) in buying a house. Trends which, as the consultancy firm points out, underlie a general sense of optimism of Italians towards the economic trend.

In the episode of Sky TG24 Business on November 25, there is also space for the consequences of the increase in inflation with Michele De Michelis, Frame Asset Management Investment Manager, and with Antonio Cesarano, chief global strategist for Intermonte Sim.