In that earlier period, my colleagues and I doubted that we would ever see single-digit mortgage rates again. And, many of us despaired as we listened to borrowers who were convinced that it was wise to “buy now” before prices inevitably rose further.
In the wake of debt problems and amidst worries about the state of the global economy, we have seen renewed market turbulences over the past weeks. However, looking at the underlying development of the real economy, the situation in Germany and the euro area is not as dire as these turbulences might suggest.