Loans for builders
:
Mortgage rates fell slightly in January
Will that heat up housing construction, which has recently come under pressure? Lending rates fell slightly in January.
Photo: Mia Bucher/dpa/dpa-tmn
Berlin Rising construction costs and high interest rates on loans. But there is a small ray of hope: the rise in construction interest has recently been stopped, the magazine “Finanztest” has observed.
Mortgage interest rates have risen sharply over the last year. In January, however, the trend was stopped for the time being, according to the “Finanztest” magazine (3/2023). On average, banks demanded 3.56 percent for loans with a ten-year fixed interest rate – with 80 percent financing and two percent repayment. A month earlier it was 3.76 percent.
According to the survey, eleven banks, including Comdirect, Consorsbank and 1822direct, offered the cheapest interest rate offers in this constellation at 3.35 percent. In November, it was just one bank offering at best 3.36 percent annual interest. With a 20-year fixed interest rate, the best interest rate was slightly higher at 3.46 percent (Creditweb). For comparison: In November, loans were still available here for conditions of 3.54 percent.
“Finanztest” recommends those who want to build to finance at least two percent repayment at the current interest rate level. Otherwise it would take more than 40 years before the debt is paid off. In addition, if the fixed interest rate expires after 15 years, for example, only a little more than a third would be repaid. A rate hike could then lead to serious problems.
© dpa-infocom, dpa:230213-99-580903/5
