Mortgage rate might dip below 1 pct in short term

Published 21.04.2016 01:07
Updated 21.04.2016 01:08

Emlak Konut GYO Chairman Murat Kurum said he expects the mortgage interest rate to drop below 1 percent, following the Central Bank of the Republic of Turkey's (CBRT) decision to lower the upper band of the interest corridor by 50 base points, or 10 percent.

Speaking at the launch ceremony of the "Avrupa Konutları Başakşehir" (European Residences Başakşehir) project, Kurum said the housing sector favors the decrease of interest rates, adding that backed by the market expectations in line with the CBRT's interest cuts, markets including the housing sector, will begin implementing lower interest rates.

Kurum also said the housing sector will follow the same path as the CBRT. He backed his opinion, saying he expects markets to automatically decrease the mortgage interest rate by 1 percent in the short-term. According to exclusive news by Habertürk daily, the representatives of the real estate sector claim people postpone their decision to buy residential property due to high interest rates. Accordingly, people consider 1 percent as the "psychological limit," and the representatives indicated that when the mortgage interest rates decrease below 1 percent, residential property sales remarkably increase.

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