Jump in mortgage interest rates?

Skeptics in Bulgaria often talk about an upcoming increase in loan interest rates in June. Is this true?

At the beginning of the year, the real estate market was marked by some uncertainty caused by Bulgaria’s entry into the Eurozone. During the first quarter of 2026 alone, some banks lowered mortgage interest rates to around 2.13%, which boosted the interest of buyers and investors in the market. Back then, the co-owner and managing director of the agency “Nov Dom 1” Yordan Yordanov made a clear forecast:

“With the removal of the currency board, the Bulgarian National Bank released bank reserves amounting to over 7.5 billion euros, which are ready for lending. At this stage, we expect interest rates to remain stable, and it is even appropriate for them to fall below 2%.”

(Fakti.bg, January 2026)

On April 30, the European Central Bank (ECB) announced that it is keeping the key interest rates unchanged, despite rising inflationary pressures in the eurozone.

The deposit rate remains at 2%, the main refinancing rate at 2.15%, and the marginal lending facility at 2.40%, with these levels having remained stable for nearly a year.

The decision comes amid rising energy prices due to the conflict in the Middle East. According to the institution, future developments depend on the duration and intensity of the conflict, as well as how long the high energy prices will persist.

The ECB states that the decision to maintain interest rates provides more time to assess the impact that the conflict in the Middle East may have on inflation. Currently, the economic environment remains relatively stable, but high energy prices continue to pose a risk of further price increases and pressure on the economy. The institution is maintaining a cautious approach for now and will continue to monitor economic data before making any new changes to monetary policy.

A similar approach is being followed by other leading central banks worldwide, including the US Federal Reserve and the Bank of England, which are also keeping their interest rates unchanged.

At the same time, the Norwegian central bank has already signaled a stricter approach by raising the key interest rate for the first time since 2023. This makes it the first central bank in Europe to take steps toward tightening monetary policy. The institution refrains from giving specific indications about future moves, noting that the current decision follows the forecast announced in March.

What’s next for buyers and investors?

More and more buyers are closely monitoring how mortgage loan conditions will develop in the coming months.

According to Yordan Yordanov, the market is gradually entering a more favorable period for buyers. Better conditions on mortgage loans open a new window for property purchase, and for those who act in time, this can prove to be a decisive advantage. For buyers, this means more affordable financing and greater predictability when purchasing a home, while for investors, it is a good opportunity to take advantage of a market that continues to maintain activity and interest.

In this market, it is important to make decisions after thorough information and consultation with professionals. After all, when it comes to significant investments, it is better to have more information rather than insufficient.