Yields on the bond markets have recently fallen significantly and this is now also having an impact on real estate loans.
According to a report by the comparison portal Check 24 on Wednesday, interest rates for ten-year home loans are a quarter cheaper at 2.4 percent compared to the highs of 3.2 percent at the beginning of July.
In the first half of 2022, construction interest had almost quadrupled.
According to Check 24, this upward trend appears to have stopped following the interest rate decision by the European Central Bank (ECB) at the end of July.
Markus Fruehauf
Editor in Business.
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"We are seeing an easing in construction interest rates," says Ingo Foitzik, Managing Director of construction financing at Check 24. "We expect interest rates to move sideways in the near future." With the current conditions, buying real estate is again an option for more consumers.
Banks did not adjust interest rates in lockstep during this very volatile period.
Therefore, the comparison of different construction financing offers is more important than ever, added Foitzik.
Yields on the bond market have also fallen significantly again.
While the yield on ten-year Bunds was almost 2 percent in mid-June, it fell to a four-month low of 0.68 percent on Tuesday.
This decline is linked to bond price gains.
On Wednesday, however, the yield rose again to 0.89 percent.
Traders attributed this to an easing in the Taiwan crisis.
The day before, the Bund had benefited from its safe-haven status, to which investors had fled amid tensions between China and the United States.
The fluctuations on the bond markets are currently very high due to inflationary pressure and the turnaround in interest rates.
In the uncertain economic situation, this is likely to remain the case for the time being.