Building interest over four percent – what house builders need to know now

Frankfurt Home loans with ten-year fixed interest rates cost an average of over four percent again, almost 0.5 percentage points more than in January. This is shown by data from the Frankfurt financial service provider FMH-Finanzberatung and the building loan broker Interhyp. And there is a risk that construction money will become even more expensive, because the European Central Bank (ECB) wants to raise its key interest rate further in order to combat the persistently high inflation.

Tobias Just from the Irebs Real Estate Institute at the University of Regensburg therefore even expects interest rates of up to five percent over the course of the year. Private households are currently unsettled. Just how strong was recently demonstrated by the consulting firm Barkow Consulting: At 12.7 billion euros, new business with mortgage lending in January was “weaker than ever” since records began in 2003.