Building interest rates are rising more slowly - what this means for loan customers

Building interest rates are rising more slowly - what this means for loan customers

According to a report by ga.de, building interest rates in Germany have recorded a slight decline in recent weeks after rising steadily since the beginning of last year. While a loan with a ten-year fixed interest rate cost an average of one percent interest in January 2022, this value rose to over four percent by November 2023. However, the increase has slowed in recent weeks and the latest figures show that a ten-year loan currently has an interest rate of 3.58 percent. This means an interest difference of 1,500 euros per year for credit customers if, for example, you take out a loan of 300,000 euros.

The analysis by the Düsseldorf-based consulting firm Barkow shows that one reason for this development is the latest inflation data in the USA, which caused the interest rate for ten-year federal bonds to fall. Since this interest rate is still decisive for the development of building interest rates, the development in the USA also has an impact on the German market.

This development could have a positive impact on the real estate market in Germany. Lower building interest rates could lead to more people taking the step to own their own home, which could increase demand for real estate and thus also prices. Companies in the construction sector could also benefit, as lower construction interest rates could make it easier to finance construction projects and stimulate demand for new construction projects.

However, it is important to note that the development of building interest rates depends on various factors and that other economic developments can also have an influence on it. Potential property buyers and investors should therefore continue to closely monitor developments in building interest rates in order to be able to make informed decisions.