VMany experts for mortgage lending from banks expect construction interest rates to move sideways over the rest of the year – and at the same time house prices will continue to fall. This is the result of a survey conducted by the consumer portal Biallo among 14 construction financing professionals from different banks.
According to the portal, interest rates for loans with a term of ten years were recently just under 4 percent. Nine out of 14 mortgage lending experts expect interest rates in the second half of the year to develop similarly to the first half of the year, i.e. with a sideways movement, albeit with a still high range of fluctuation. Five experts are forecasting slightly rising interest rates by the end of the year, none predicting falling interest rates.
What’s next in 2024?
For the course of 2024, four of those surveyed expect interest rates to rise, and two expect interest rates to fall.
According to the survey, there is almost unanimous opinion with regard to real estate prices and rents: 13 out of 14 experts expect real estate prices in Germany to continue falling in the coming months. Only Deutsche Bank sees the bottom already reached in the first quarter and sees a trend reversal.
Twelve out of 14 experts expect rents to rise in the short to medium term. HVB and Commerzbank did not want to comment on the rents. Unrefurbished existing properties with low energy efficiency should, according to bank experts, show the highest price reductions, while energy-efficient new buildings, especially in the cities, should show relatively stable prices due to the housing shortage.
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