Mainly because there was a massive collapse in new construction, the volume of construction financing fell significantly.
(Photo: dpa)
Dusseldorf The European Central Bank (ECB) raised interest rates on Thursday for the tenth time in a row since the central bank began tightening monetary policy at a historically exceptional pace in the summer of 2022.
The key interest rate rose by a further 0.25 percentage points to 4.5 percent. A majority of market observers assume that the peak in interest rates could have been reached.
The financing costs for real estate are also at a similarly high level, but have been for some time. Property buyers have to pay an average of around four percent for a loan with a ten-year fixed interest rate for around twelve months. The FMH index is currently trading at 3.96 percent.
Does the possible end of the ECB interest rate cycle now have an impact on the level of financing costs for real estate? Will conditions improve? Or is there no relief in sight for buyers for the time being?
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