The American central bank already completed the turnaround on interest rates on Wednesday and increased the key interest rate in the USA for the first time since 2018.

In Europe, this is yet to come.

In view of the war in Ukraine and its consequences, the European Central Bank has shown itself to be flexible on the way to normalizing monetary policy.

According to the Federal Statistical Office, the inflation rate in Germany was already 5.1 percent in February – due to further increases in energy prices.

In the euro area it was 5.9 percent.

Kerstin Papon

Editor in Business.

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On the other hand, loan interest rates have already risen significantly this year on the mortgage lending market – to a level last seen in 2018 (see chart).

According to data from FMH-Finanzberatung, the mortgage interest rate for a ten-year fixed interest rate is currently 1.69 percent on average across Germany.

For 15 years of fixed interest it is 1.98 percent.

For comparison: the historic lows were 0.62 and 0.89 percent around two years ago.

In 2011, however, an average of 4.27 percent had to be paid for a fixed interest rate of ten years and 4.72 percent for 15 years.

Data from the financial service provider Dr.

Small, based on around 35,000 transactions over 6 billion euros per month.

The standard rate calculated as an example for a loan of EUR 150,000 (repayment: 2 percent, loan-to-value ratio: 80 percent) rose by EUR 25 to EUR 439 in February.

The last time this loan was this expensive was in spring 2019 - with the difference that real estate prices are now significantly higher than three years ago, says Michael Neumann, CEO of Dr.

Small private customers AG.

Nevertheless, despite the recent increase, interest rates are still cheap in historical comparison.

Therefore, many owners are currently looking at follow-up financing, as the interest rate level is unlikely to get cheaper for the time being, says Neumann.

Not only those whose fixed interest rates are expiring could do that.

In principle, debt restructuring is possible ten years after a loan has been paid out, with a notice period of six months.

Follow-up financing is therefore currently playing a particularly important role: three out of ten financings were in February.

On the other hand, many owners who did not yet have a special right of termination secured the interest up to five years in advance with a forward loan.

The proportion of these loans has recently increased from 7 to 11.5 percent.