Falling building interest rates: Effects of current developments on loan customers

Falling building interest rates: Effects of current developments on loan customers

According to a report by ga.de, building interest rates in Germany have fallen in recent weeks after previously rising continuously. Interhyp experts stated that in January 2022 a loan with a ten-year fixed interest rate cost an average of one percent interest, while in November 2023 it was already over four percent. According to the consulting firm Barkow, the interest rate for such a loan is currently 3.58 percent.

This development has a direct impact on credit customers. Half a percentage point less interest on a loan of 300,000 euros means an interest difference of 1,500 euros per year. It is expected that this reduction in building interest rates will lead to increased demand for property purchases and financing. This could further stimulate the real estate market, potentially leading to rising property prices.

In addition, the development of building interest rates has a direct impact on the construction industry. Lower building interest rates can make both private and commercial construction projects more attractive, which could lead to increased construction activity. This, in turn, can increase demand for building materials and construction services and help boost the industry.

Overall, the reduction in building interest rates is a positive signal for the real estate market and the construction industry. However, it is important to note that further developments in the financial markets as well as economic and political events may influence building interest rates in the future. Property buyers and developers should therefore continue to closely monitor market developments.