2023-07-29 12:45:35
Construction site
A building is erected in Hanover as the sun rises on the horizon. The conditions for construction interest are currently fluctuating significantly.
(Photo: dpa)
Frankfurt Even the professionals were surprised by the turnaround: According to the Bundesbank, interest rates for construction loans have risen unexpectedly sharply in Germany since spring 2022 in historical comparison.
Rising interest rates, high inflation and high construction costs have changed the conditions for real estate financing significantly. While construction interest was still below one percent at the beginning of 2021, the rate for ten-year loans is currently fluctuating in a corridor between 3.5 and almost four percent.
On Thursday, the Governing Council of the ECB decided to raise interest rates by a further 0.25 percentage points and raised the key interest rate, at which commercial banks can get fresh money from the ECB, to 4.25 percent.
The question of how interest rates will develop after the latest ECB decision is therefore all the more important for real estate buyers.
Will construction interest rates soon exceed the four percent mark? These are the most important answers from experts on the likely conditions for home buyers in the coming months.
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