US policy raises building interest rates: property buyers must act now!

US policy raises building interest rates: property buyers must act now!

The economic policy of the United States has a direct impact on building interest rates in Germany. US President Donald J. Trump has contributed to rising US Treasury yields through his erratic tariff policies and recently passed tax cut package. These developments are fueling hopes of interest rate cuts for home loans in Germany, which are now lower than before. Loud konii.de 10-year US Treasury bond yields have risen to 4.6% and German government bonds are also facing a rise; the yield on 10-year federal bonds was 2.7%.

The rising yields are the result of reduced interest in US Treasury bonds, which have fallen to their lowest level since February. In addition, Moody’s lowered the rating for these bonds by one notch on May 16th. This downgrade is explained by the long-term development of the budget deficit as a result of the tax cut package. The international investment market, looking for safe havens, is increasingly turning to German bonds.

The impact on home loans

The increase in yields leads to higher interest rates for mortgage loans. In Germany, the interest rate for building loans with a 10-year commitment period rose to 3.6%, which represents a significant increase compared to 3.2% in December. Experts from Aengevelt Immobilien recommend that planned transactions and construction financing be carried out immediately, as the development of interest rates remains uncertain. A moderate rise in interest rates seems more likely than a decline.

Dr. Wulff Aengevelt says that the successes in combating inflation could be offset by US policy. The US government's increasing spending coupled with the passage of the tax cut package could further increase federal bond yields. These developments also have an impact on Pfandbrief interest rates, which are also likely to rise.

The financial market and its risks

In a broader context, both trading financial instruments and cryptocurrencies involve significant risks. Prices are subject to extreme fluctuations and are vulnerable to external influences, including financial, regulatory or political events. This reduces the predictability and security of investments, which is why experts recommend seeking advice from knowledgeable people before making major financial decisions. The data on the relevant platforms may not be real-time or completely accurate, further highlighting the role of location and market timeliness of information.

Overall, the expectation that interest rates could continue to rise is a signal for investors to act quickly to take advantage of current conditions before conditions deteriorate further.