The Bank of Japan’s policy rate hike has pushed up mortgage rates, leading to a marked increase in new contracts for fixed-rate products. Contracts are increasing because fixed rates remain stable for longer periods than variable rates.
The Bank of Japan’s policy rate hike has pushed up mortgage rates as well. As a result, new contracts for fixed-rate mortgages, whose rates are less likely to change over an extended period than those on variable-rate mortgages, are increasing.
The rise in new fixed-rate contracts is said to reflect growing demand to limit the risk of long-term rate fluctuations while interest rates are rising.
At the same time, there is speculation that expanding demand for fixed-rate products is affecting contract trends at regional financial institutions.
This article reports on changes in mortgage rates and contract types resulting from the Bank of Japan’s monetary policy.