Building interest rates are rising slightly: what this means for property buyers

Building interest rates are rising slightly: what this means for property buyers

Building interest rates, which had fallen in recent months, have now risen slightly again, which could pose new challenges for potential property buyers. Financial comparison portals such as Biallo and FMH-Finanzberatung have shown that the mortgage interest rate for a building loan with a ten-year fixed interest rate in Germany was on average 3.49 percent in March, but has now risen to 3.57 percent. For shorter or longer terms, the interest rates are even higher, which shows that shorter fixed interest rates are currently more expensive.

The hope that building interest rates could fall even further has been somewhat dampened by the European Central Bank's (ECB) recent decision to leave the key interest rate at 4.5 percent. This could signal that lower building interest rates are not to be expected this year. In particular, prospective buyers hoping for lower interest rates and prices continue to hesitate, as a survey by Deutsche Bank shows. Nevertheless, Florian pupils from Deutsche Bank Immobilien warns against waiting, as the offer is large and the prices are moderate. He encourages potential buyers to implement their plans as soon as they find the right property.