In Germany, too, the days of historically low interest rates seem to be numbered.

If you read the instructions from the European Central Bank correctly, the turnaround in interest rates is in sight.

Interest rates for real estate loans have been rising slightly for some time, but have been rising more dynamically since the beginning of this year.

According to data from FMH Finanzberatung, the interest rate for a mortgage loan with a ten-year fixed interest rate is currently 1.42 percent on average across Germany.

About two years ago, at the beginning of the corona pandemic, it was a historic low of 0.62 percent.

Fixed interest rates for 15 years now compare to 0.89 percent back then at 1.68 percent.

Kerstin Papon

Editor in Business.

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The financial service provider Dr.

Klein reports that construction financing is becoming more expensive and at the same time the need for security is increasing.

There is movement in interest rates, says Michael Neumann, CEO of Dr.

Small private customers AG.

This was particularly felt by those who were just about to wrap up their construction financing.

Because even if the interest rate level is still very low in historical comparison, this is noticeable in the wallet.

This is shown, for example, by the standard monthly rate calculated as an example for a loan amount of EUR 150,000 (loan-to-value ratio: 80 percent, repayment: 2 percent).

In January, this rose to 414 euros – higher than it has been for two and a half years.

A year ago it was 368 euros.

The direction is emerging, it will probably not be cheaper for the time being, says Neumann.

Homeowners, whose follow-up financing would be pending in the future, would also recognize this.

Because these are now increasingly taking out “forward loans” in order to secure the current interest rate level up to five years in advance.

Because the proportion of these loans has recently risen to 7 percent after 5.67 in the previous month.

The financial institutions charge interest premiums for this, but the borrowers are thus protected against rising interest rates and buy a piece of security.

The data is based on around 35,000 transactions worth around six billion euros a month.