Falling fixed deposit interest rates and cheaper real estate loans - financial experts see the beginning of a trend reversal

Falling fixed deposit interest rates and cheaper real estate loans - financial experts see the beginning of a trend reversal

According to a report by www.merkur.de, savers receive less money with fixed interest rates. The current fixed deposit interest rates have fallen again for the first time, although the overall level remains high. Real estate loans, on the other hand, should become cheaper.

The current figures from the comparison portal Verivox show that fixed deposit interest rates have fallen for the first time in a long time. At the beginning of November, savers received an average of 3.39 percent for 10,000 euros with a term of two years, while as of December 11th it was “only” 3.35 percent. Although levels are still high and the current impact on consumers is manageable, this may indicate a reversal in the trend. The trend is also evident in interest rates on overnight money, where the upward trend appears to have reached its peak.

The current interest rate breaks by central banks due to falling inflationary pressure have an impact on the conditions of fixed-term deposits. Inflation recently fell to 2.4 percent in the euro area and 3.1 percent in the USA, which led the US Federal Reserve to announce the third interest rate pause in a row and announced cuts for next year. The ECB is expected to follow suit. This could lead to banks lowering their key interest rates earlier than planned and this being reflected in the terms and conditions of fixed-term deposits.

In addition, real estate loans are expected to become cheaper as banks are already factoring possible interest rate cuts by central banks into their conditions next year. According to the comparison portal Check24, the current average interest rate for a 10-year building loan of 400,000 euros is 3.34 percent, up from 4.02 percent in October. This could lead to noticeable savings in the overall cost of a real estate loan.

Overall, these developments could lead to savers looking for alternative investment options and the real estate industry to benefit from cheaper loans. This should also have an impact on the overall market and influence the financial industry.