Are construction loan interest rates currently rising?

Hello forum,

I am currently evaluating various financing offers, including a Wohn-Riester from the building society with the fox. I actually wanted to take 4 weeks before deciding, but I got the information from my advisor on Friday that the loan interest rates for the Wohn-Riester contract are supposed to increase by 0.3% on Tuesday (!). (From 2.5 to 2.8%; they have already risen by 0.1 from the initial offer in May of 2.4% to 2.5%)

Basically, the offer had appealed to me the most so far, but a "quick decision" makes me a bit uneasy with such a comprehensive matter as a construction financing.

On the other hand, 0.3% over a 25-year term and a six-figure loan amount is no small matter.

KFW Energieeffizient bauen has also already increased by 0.2%. (From 1.41 to 1.61%)

Does this reflect the current trend in construction interest rates? What to do – strike tomorrow or sit it out hoping for interest rates to fall again?

Hello forum,

I am currently evaluating various financing offers, including a Wohn-Riester from the building society with the Fuchs.
I actually wanted to take another 4 weeks before making a decision, but I received information from my advisor on Friday that the loan interest rates for the Wohnriester contract are supposed to increase by 0.3% on Tuesday (!).
(From 2.5 to 2.8%; they have already risen from the initial offer in May of 2.4% by 0.1 to 2.5%)

Basically, I liked the offer the most so far, but a "quick decision" makes me a bit uneasy when it comes to such a comprehensive matter as construction financing.

On the other hand, 0.3% over 25 years and a six-figure loan amount is no small matter.

KFW energy-efficient building has also already increased by 0.2%. (From 1.41 to 1.61%)

Does this reflect the current trend in interest rates? What to do – jump in tomorrow or wait it out hoping for interest rates to fall again?

Yes, indeed. Construction interest rates are rising again right now. Check out aktuelle-Bauzinsen.Info
However, if you take a higher repayment with the KfW (246 euros of the 50,000 euros), then the interest rate is currently 1.0%, it was 0.9% three weeks ago.

Wohnriester is a tricky matter. I discussed the whole thing with my tax advisor and he said it should be viewed very critically.
You do recover a subsidy over the term, but you have to pay taxes on it during retirement.
Even if a banker calculates today that you save, for example, 10,000 euros through the subsidy, you still have to answer to me what 10,000 euros are worth in 20 or 30 years. That corresponds to a purchasing power today of about 4,000... great!! but then you have a tax burden in retirement. No thanks.

We want to finance 400,000 euros in a classic way, 200,000 for 10 years at 2.7%, 150,000 at 3.5% for 30 years, and 50,000 euros through the L-Bank since KfW70 is being built for 1%.

if you choose a higher repayment rate with KfW (246 euros from the 50,000 euros), then the interest rate is currently 1.0%, which was 0.9% three weeks ago

This is only partially true and depends on the federal state or the bank through which the financing is done. Next week, despite a high repayment rate, I have to pay 1.50% nominal. My financing bank (= Volksbank in NRW) does not offer any further discount. I can understand that, since the bank hardly makes any profit from the loans (even though I would like it for our monthly installments)...

.... I actually wanted to take another 4 weeks before making a decision, but on Friday my advisor informed me that the loan interest rates for the Wohnriester contract are supposed to increase by 0.3% on Tuesday (!). .... ..... however, a "quick decision" makes me a bit uneasy when it comes to something as extensive as a construction financing. ......?

The offers should actually include a date indicating how long the offer is valid. That means: regardless of whether something changes in the meantime, the created offer should apply... for us, the offer was valid for 4 weeks; that's how long we had to decide. It should be the same for you. Information from the financial advisor that things are supposed to get worse next week is just a so-called "kick"... just call again tomorrow and ask about the deadline.

Did he predict that for Tuesday on Friday because he wants a signature from you on Monday?

The interest rate is currently rising (climbing up slowly). But as I see it, there should be more room for negotiation than ever, since it is currently more of a panic reaction in the market. This is politically very strongly reflected in the stock market right now.

I - need my loan at the beginning of next year - am currently keeping my distance from rash decisions, even though the current situation makes me itch to forward. However, the interest rate channel has been stable for about a year. As long as it doesn't break out, I won't do anything.

30 years fixed interest rate at 80% loan-to-value currently offers the best value for money.
Followed by 10 years at 90%.

If you need your loan soon, I would recommend concluding it, but compare very carefully and renegotiate.

It will certainly get unsettled once more around/from 07/04 - if the negative deposit rate actually comes (in other countries it has proven that it doesn’t reduce interest rates, but can make them rise), possibly also the key interest rate to 0.25%. Although the key interest rate has not dictated the direction of interest rates for a while. It is more the government bonds / Euribor / average yield. In addition, the Germany bond and the elections are still coming this year.

So I can hardly imagine that the key interest rate will be lowered again. We will get another appointment at our bank in a week because the notary appointment is coming up in the next few days. The banker also knows that we have been at other institutions. Let's see how much room for negotiation there is..I will report back to you.