Economist warns against fixed rate deals

Economist warns against fixed rate dealsChief Economist Reid Krohn-Pettersen in Norsk Familieøkonomi.Photo Elisabeth Tønnesen

Thursday’s rate cut is good news for most people, chief economist Reid Krohn-Pettersen at Norsk Familieøkonomi (Norwegian Family Economy) says, but he warns against fixed rate deals.
The Chief economist believes that mortgage interest rates will be lowered even more,  Stavanger Aftenblad writes.
– Before summer the banks will lower the mortgage interest rates to below 2 percent. Banks are still making a lot of money on mortgage interest rates and our neighbouring countries also have lower interest rates than  Norway, says Krohn-Pettersen.
– It is also important that people keep their cool now. The interest rate will be further reduced, so we have to resist the temptation to enter into any of the fixed rate deals that the banks are offering now. For households with stable income and secure jobs this is good news,  Krohn-Pettersen says.

 

Source: NTB scanpix / Norway Today

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