With its renewed lowering of the key interest rate, the European Central Bank (ECB) caused great astonishment on the market, as even experts did not expect this step.
The interest rate cuts have always had a positive effect
However, many prospective builders or homebuyers may have been pleased, because so far, the interest rate cuts have always had a positive effect on the construction loan interest.
One of the prime examples is the penultimate cut in the key interest rate to 0.15 percent, which made the already very favorable real estate loans even cheaper and even made it possible for new interest rates to set new records in terms of low interest rates.
But in recent weeks, interest rates have picked up marginally – and interest rates on mortgages have not given in since the last cut in the prime rate.
Construction money is still extremely cheap
It seems that the absolute low point in the construction field has been reached somewhat towards the middle of the year. Since then, mortgage rates have tightened, the cut in the interest rate has had little effect. However, potential borrowers need not be confused because ultimately the construction money is still extremely cheap.
The last rise in interest rates is not very large, many homeowners who have financed cheap only a few years ago, would be glad they could benefit from the current conditions.
Timing of taking out a real estate loan
From that point of view, the timing of taking out a real estate loan could hardly be better. The current mortgage rates are more attractive than ever, and ultimately it will only be a matter of time before interest rates continue to rise. Although the current pressure is low, another and possibly significant decline in mortgage rates is considered unlikely.