DAccording to data from the financing broker Interhyp, interest rates for real estate loans have risen by almost 4 percent to their highest level since 2011. A ten-year standard loan was therefore subject to interest at 3.98 percent before the weekend, as the Munich-based company announced. Interhyp expects that the 4 percent threshold will soon be exceeded.
“It is unlikely that interest rates will drop noticeably again in the near future,” said Mirjam Mohr, the board member responsible for private customer business. In the weeks and months to come, there will probably be no change in the overall economic mix of higher inflation, the ECB’s tightened monetary policy and high yields on German government bonds. “We therefore expect interest rates to continue to rise moderately.”
The rapid increase in real estate interest rates since the beginning of the year has also surprised many experts in the real estate industry – in February the average interest rate for a ten-year loan was just over one percent, in June it was already over 3 percent. Demand for real estate loans was still high in the first half of the year, but has fallen noticeably since the summer.
The rise in interest rates in recent weeks from 3.5 to 4 percent can mean a monthly additional burden of well over 100 euros for buyers. According to the Interhyp sample calculation, the monthly installment for a purchase price of EUR 400,000, equity of EUR 50,000, repayment of 2 percent and an interest rate of 3.5 percent is EUR 1705. With an interest rate of 4 percent, it is already 1860 euros.
