Record Increase in Housing Loan Interest Rates
According to the announcement made by the Central Bank, the interest rates on the home loans reached the highest value of the last 16 years. The weighted average of interest on housing loans rose from 13.11 percent to the highest since August 2016. As housing loan interest rates continued to rise, President Recep Tayyip Erdogan called for interest rates to be lowered.
Housing mobilization implemented by the banks has caused slight delays in housing loan interest rates. In March, the average mortgage interest rate fell below 11%. President Recep Tayyip Erdogan stated that he would be able to meet with state banks on interest rates when he made his return from his trip to Qatar. The president explained that raising interest rates to increase bank revenues put citizens in a difficult situation. Stating that this process is still continuing, Erdogan said that he planned to negotiate with the Prime Minister and other ministers with banks on this issue.
The increase in housing interest also directly affects the real estate sector. House sales are expected to decline. Citizens who want to buy a house to buy a loan have to think twice. Citizens who dream of purchasing long-term homes prefer to delay their dreams a little longer. Advantageous campaigns provided by banks on housing loans may not be enough. The public depends on negotiations between the state and the public banks to bring a solution to the rising interest rates which put citizens in a difficult financial situations.