In March the demand for construction loans went high. (Photo: Freepik, Eyeem)
Berlin/Lübeck/Munich – roller coaster ride on real estate interest! Only the federal debt package drove interest rates up to 3.73 percent, then US customs policy brought the loan costs down again. Uncertainty is trump card, but the current interest level appears comparatively cheap.
The average interest rate reflects the relaxation in the loan costs interhyp.de Against: For 10-year loans, the effective interest rate has dropped to 3.49 percent on average. At drklein.de the top interest is now 3.30 percent, check24.de has 3.10 percent as the top value (as of May 7).
Development of the loan costs – demand for construction loans
The current level is above the conditions in early 2025, when the Interhyp average rate for 10-year loan was 3.26 percent. The increase in the 1st quarter was particularly noticeable in the cities. However, the maximum stalls of 2023 with 4.23 percent loan costs (10 years) are passé.
In March, the demand for construction loans attracted – the fear of rising interest rates may have drove demand. With 22.2 billion euros, the volume was calculated Analysis House Barkow Consulting Well above February (19.1 billion) and as high as in June 2022.
Real estate prices rose vigorously – Trump stirs up uncertainty
In the 1st quarter of 2025 the purchase prices also increased – and clearly. In the year compared to 1.1 percent in condominiums and even 2.9 percent in one and two-family houses, the reports Latest IW living index. The purchase prices rose most clearly in Essen and Leipzig.
How do the construction interest rates will develop in the coming months? US President Donald Trump’s unpredictable policy complicates the forecast. The more German government bonds are considered a safe port for capital, the more their returns increase – which are the reference for real estate interest.
Forecast: Interhyp banking panel – Chance for good conditions
The experts are at short notice From the interhyp panel Diseston: For the next few weeks, 60 percent expect stable, 20 percent rising and 20 percent with falling interest. But in the long term in 2025, 80 percent expect a trend towards 4 percent for 10 years of term.
“The impression that real estate loans are currently particularly expensive is deceptive,” emphasizes Interhyp expert Mirjam Mohr. In the meantime, however, building interest rates are again seen at an average of around 3.5 percent and depending on the creditworthiness of the buyer. This offers good opportunities interested in buying (ftd.de building financing calculator).
Impulses in the coalition agreement – tip: New dashboard for building interest rates
Many players hope for a new impetus in housing construction from the new Minister of Construction Verena Hubertz. A legislative reform, a new type of building and less bureaucracy could make the new building cheaper and enliven what could have a positive effect on offer and prices as a whole.
Extensive construction interest statistics provide the new Europace data portal: For April, it shows an effective interest rate of 3.8 percent (several terms), an average monthly rate of 1,071 euros, an average loan amount of 272,177 euros and 10.7 years of interest.