The amount of interest you pay on a home loan obviously depends on your personal circumstances and from bank to bank. But if we consider the average, as Immotheker Finotheker does in its interest rate barometer, we see that mortgage rates have risen sharply in a short time.
At the start of this year, the average interest rate for a 20-year fixed rate mortgage was still around 1.5%. Mortgage rates had remained at a very low level since the start of the health crisis. Today, interest rates are around 2.3 to 2.4%, depending on the percentage of the total purchase amount that you want to borrow (the “quota” in banking lingo). Thus, within a few months, the loans became more than twice as expensive.
The numbers fluctuate from day to day, but the trend is clearly up. At the beginning of May, the average interest rate for a loan of more than 80% of the purchase amount even briefly rose above 3%, for the first time since December 2014.
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