DUBLIN--(BUSINESS WIRE)--KBRA Europe (KBRA) releases research on the housing market in the Netherlands. House prices have started declining in the country as interest rate rises and affordability issues begin to impact the market. A rapid post-pandemic rise can bring concerns for an equally rapid decline as demand dries up. Mortgage interest rates are back to levels not seen in over seven years. However, a robust economy and unemployment picture could help to limit the impact on pricing pressures. Further, a still resilient and borrower-friendly market provides a supportive backdrop to existing mortgage borrowers.
- House prices in the Netherlands are starting to correct from elevated levels due to increased interest rates and inflation.
- Mortgage interest rate rises are impacting affordability, which decreases demand for mortgage borrowing and homeownership.
- Supportive factors, such as low levels of unemployment and unique features of the Dutch market, should limit house price declines as the impact of rate rises is absorbed.
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KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.