Tuesday, November 5, 2024
HomeA rate cut boosts mortgages, but there are still major issues.

A rate cut boosts mortgages, but there are still major issues.

Il Rate reduction Wanted by the ECB, this gives hope to Italians who want to buy property or who already have an active mortgage. This has been revealed by a new survey conducted by Replaces Unipol. e Ipsos On our countrymen’s reaction to European policies on debt. It is mostly young people who dream of buying their first home, but now older generations are also more inclined to invest in real estate.

The European Central Bank on October 17 announced a 25 basis point cut in interest rates for the third time since June, followed by a further cut in December. This decision is part of a more complex and detailed strategy. Disinflation The aim is to increase consumption and financial activities.

A decrease in rates leads to an increase in mortgages.

A reduction in interest rates represents a Motivation:

  • for the purchase of First house (34% Italian);
  • to the projects of Renovation (21%);
  • for the purchase of Second house (16%).

Change based on desires race. Gen Z sees the kit as an incentive to take out a first home mortgage, Gen X and Baby Boomers think of vacation homes, Gen Z and Gen X both think of renovation work.

Millennials, on the other hand, are the most likely Re-negotiate the mortgage.While Baby Boomers are the most reluctant to do so – also because in many cases they have done so in the past.

Italians want strong rate cuts.

One in five respondents aged 28 to 74 want a rate cut of more than 2 percent. The percentage that everyone agrees on will be that. 2.6% And the current numbers, which 6 out of 10 Italians do not like, determine the decision to postpone taking out a mortgage, especially among baby boomers.

According to a Unipol analysis, 4 out of 10 Italians live in such a family Active mortgagewith Millennials and Gen Z (about half of respondents in this segment). 20% of Baby Boomers have not yet paid off their debt.

The type of mortgage deal also changes based on age: younger people choose a variable rate with a cap, while a fixed rate is more popular with people aged 30 and over. More than one in three of our compatriots (35%) are dissatisfied with the terms offered by the bank. Fifty-six percent of the sample said they were satisfied, and the percentage increased among those choosing a fixed rate.

Who has trouble paying the mortgage installments.

gave Unipol Research, Among the main European insurance groups and leaders in the non-life sector in Italy, they stand out as being owned by almost half of Italians. Payment problems At least one mortgage payment. Reasons are not found in mere additions cost of livingrather and above all within Unexpected expenses.

If the problems for older generations are primarily economic in nature, in fact, for millennials they were affected by declining incomes and medical expenses, Gen Z, separation and divorce. Difficulties also extend to final loans and balancing payments in installments with and without interest. Also, in this case, the same reasons are seen as for pre-mortgage.

New forms of installment payments: What is Bnpl?

From the interviews, a growing trend in installment payments emerges, with one in two Italians using this method at least once. It is mainly young people who take advantage of it, often with the formula BNPL (Buy now pay later.). Known by 70% of Italians, it still remains a niche trend, with the majority of consumers concentrated among youth and Generation X.

If for Millennials and Generation Z Payment in installments Representing a strategy to maintain liquidity, Baby Boomers prefer to avoid debt for cultural reasons or trust in the financial system.

Why Interest Rate Reductions Matter

The Unipol survey therefore indicates that the ECB’s interest rate changes, which are often contested by those who call for more significant measures to help EU citizens, significantly can affect Imagine the future For many families, it gives them a glimmer of hope to buy their first home or simply pay off the loan installments seamlessly.

gave Troubles Uncertainties associated with the economic context influence investment and credit choices, even if there are cultural and ethnic components with different preferences and strategies for each age group, the real estate market. Guide different methods for What is certain is that the interest rate issue is very pressing. immediate Much more than a public debate.

Content presented by Unipol.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments