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The last time there was interest of more than three percent
on ten-year building loans was in April 2012
Photo: Julian Stratenschulte / dpa
Loans for real estate buyers in Germany are becoming more and more expensive.
The interest rates for ten-year financing rose on Wednesday for the first time in more than ten years above the three percent mark, as announced by the Frankfurt-based FMH-Finanzberatung.
Interest rates of more than three percent for ten-year construction loans were last seen in April 2012.
The most recent rise in construction interest rates since June 7 has been "particularly extreme", jumping from 2.79 to 3.02 percent in one week.
The trigger is the high inflation and the announcement by the European Central Bank (ECB) that it will raise key interest rates.
Four percent interest rates likely by autumn
For the time being, there is no prospect of improvement for real estate buyers in the future: FMH founder Max Herbst
expects the loans to become more expensive
.
In April he thought four percent interest for ten-year financing until the end of the year was conceivable.
That is already conceivable after the summer break, he says.
Interest rates have risen sharply in recent months.
In December, the interest rate for ten-year financing was still 0.9 percent.
The Munich-based real estate financier Interhyp has lowered its forecast and currently sees construction interest rates for ten-year loans at just under 3 percent on average.
They are 2.95 percent, said a company spokeswoman on Wednesday.
The reason for the rising building interest is the generally rising interest rate level on the capital markets.
Because of the high inflation, central banks are under pressure to tighten their loose monetary policy.
The US Federal Reserve will decide on further steps this Wednesday.
A rate hike of at least 0.5 percentage points to a range of 1.25 to 1.5 percent is expected.
After much hesitation, the European Central Bank (ECB) has also decided to exit its ultra-loose monetary policy: the multi-billion dollar bond purchases will end on July 1st.
At the next regular meeting of the ECB Council on July 21, the central bank intends to raise key interest rates for the first time in eleven years, initially by 0.25 percentage points each time.
my/dpa
