The recent Changes Unipol survey, processed by Ipsos, analysed the reactions and opinions of
Italians regarding the interest rate reduction that began last June, after which the European Central
Bank today announced a further cut of 0.25 percentage points.
The impact of ECB rate cut on loans and mortgages
34% of Italian home hunters view the ECB rate cut as an incentive to take out a mortgage, especially
for first home buyers. Rates had less of an impact on projects relating to second homes (16%) and
renovations (21%).
Specifically, the rate cut is an important incentive for people taking out first home mortgages,
especially for young people in Gen Z who are planning on buying a home (51%). Gen X (21%) and
Boomers (23%) are the most motivated to purchase second homes, while Gen Z (32%) and Gen X
(27%) are the most inclined to renovate.
Millennials, on the other hand, are the most likely to renegotiate their mortgage (47% compared to
a national average of 38%). Gen Z (34%) and Boomers (27%) are more sceptical, many of which,
however, have already renegotiated in the past.
In percentage terms, the average additional rate cut desired is 2.6%. However, 1 in 5 Millennials,
Gen Xers and Boomers would like an additional rate cut of more than 2%.
The analysis highlights how, for 6 out of 10 Italians, unfavourable rates have an impact on the
decision to postpone taking out a mortgage, especially for Boomers (65%). On the contrary, people
in Gen Z (48%), more than any other generation, are not willing to wait.
Read the complete Press Release.