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Building interest rates in Germany: trend reversal or temporary break?
Since the beginning of last year, building interest rates in Germany have risen continuously. In January 2022, according to the statistics portal Statista, a loan with a ten-year fixed interest rate cost an average of one percent interest, and in November 2023 it was more than four percent. But the increase has slowed in recent weeks. The consulting firm Barkow (Düsseldorf) has determined that a ten-year loan currently costs 3.58 percent in interest. Half a percentage point less on a loan of 300,000 euros, for example, means an interest rate difference of 1,500 euros per year for loan customers. One reason for this development is the latest inflation data...
Building interest rates in Germany: trend reversal or temporary break?
Since the beginning of last year, building interest rates in Germany have risen continuously. In January 2022, according to the statistics portal Statista, a loan with a ten-year fixed interest rate cost an average of one percent interest, and in November 2023 it was more than four percent. But the increase has slowed in recent weeks. The consulting firm Barkow (Düsseldorf) has determined that a ten-year loan currently costs 3.58 percent in interest. Half a percentage point less on a loan of 300,000 euros, for example, means an interest rate difference of 1,500 euros per year for loan customers. One reason for this development is the latest inflation data in the USA, which also caused the interest rate for ten-year federal bonds to fall. And that is still the decisive factor for the development of building interest rates.
According to a report by rp-online.de,
As a financial expert, I follow the development of building interest rates in Germany with great interest. The current data from the statistics portal Statista and the analyzes by the consulting firm Barkow (Düsseldorf) show that building interest rates have fallen in the past few weeks. While more than four percent had to be paid for a ten-year loan at the beginning of November 2023, the interest rate is currently 3.58 percent.
This development has a direct impact on credit customers. Half a percentage point less on a loan of 300,000 euros means an interest difference of 1,500 euros per year. The latest inflation data in the USA has contributed to the interest rate on ten-year federal bonds falling, which in turn has an impact on the development of building interest rates.
This return to lower building interest rates could have a positive effect on the real estate market, as lower interest rates increase the attractiveness of buying real estate. There could also be an increase in construction projects and renovations as financing costs are lower. Overall, this could lead to a revival in the real estate sector and further increase demand for real estate.
Read the source article at rp-online.de