07-10-2024
Although mortgage interest rates have decreased in recent months, rates are still significantly higher than in the 2018 – 2022 period. These higher rates impose a (potential) refinancing risk for mortgage consumers approaching their interest reset date. Our analysis shows that in a well-diversified Mortgage Fund like the Achmea Dutch Residential Mortgage Fund, this risk is relatively limited. Therefore, we expect no significant increase in arrears and credit losses in the foreseeable future due to refinancing.