US rate cut positively influences Danish mortgages

The Federal Reserve’s reduction of the benchmark interest rate by 0.5 percentage points has prompted a fall in U.S. interest rates, which positively affects Danish homeowners with loans. Sune Malthe-Thagaard, chief analyst at Totalkredit, explains that the decline in U.S. rates also impacts Danish mortgage rates as investors consider alternatives such as American bonds. The expectation of a Fed rate cut has already led to a decrease in the interest rates for Danish mortgages with a 30-year fixed rate and F5. Furthermore, the slowdown in job growth in the U.S. signaled by the creation of only 142,000 new jobs in August, and moderate job growth over the last three months, suggests the possibility of further rate cuts, which could drive Danish housing interest rates even lower.