Rain Leesi, head of investments at asset management company Avaron, said that year-end interest rate expectations have slowly started coming down.

The European Central Bank was expected to introduce three 0.25 percentage point interest rate hikes this year, but will no longer do so. This would have brought interest levels to around 2.7 to 2.8 percent.

"Eurozone inflation has risen to 3 percent and will probably continue to rise. If we look at what financial markets are pricing in today, then expectations today are that not much more than two interest rate hikes are expected, meaning interest rates could rise to around 2.5 percent by the end of the year, and beyond that the market today is not expecting further rate increases," Leesi said.

However, a rate rise has already been factored into Euribor. "Meaning that if no further rate increases come, then Euribor also has no significant reason to rise further," he noted.

The half percentage point rise in Euribor over recent months has not noticeably increased home loan repayments.

Anne Pärgma, head of home loans at Swedbank, said in the first quarter, the average loan taken out was €153,000. "If Euribor rises by 0.5 percentage points, then for the borrower this means around a €42 increase in the monthly payment," she said.

Pärgmäe said the number of loan agreements currently being concluded is around 30 percent higher than during the same period last year.

Ingmar Saksing, member of the management board of LVM Kinnisvara, believes the real estate market would feel a noticeable impact if Euribor rose to the level of 3.5 to 4 percent.

"Today, in a good sense, competition in the banking market has clearly reduced margins as well. Banks are genuinely competing for good clients and that in turn has not pushed total interest rates so high," he said.

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