Construction costs are currently skyrocketing

Speaking of approved... I had recently reported that the sellers had backed out just before the purchase was finalized. We were actually able to switch to another house with the loan, two villages further... it only costs some processing fees but conditions, etc., remain the same. We hope to really(!) sit with the notary next week or the week after. The draft contract is already with us. Keeping my fingers crossed that nothing suddenly goes wrong again.

The 10-year swap is falling significantly again today, currently it is at 1.85%. Nevertheless, I have not observed any reduction in financing conditions by the banks on the portals in the past few weeks. Are they really lagging that far behind?

The 10-year swap is dropping significantly again today, currently at 1.85%. Nevertheless, I have not observed any reduction in financing conditions by the banks on the portals in the last few weeks. Are they really that far behind?

Yesterday and today have been wild regarding the 10-year federal bond swap. If it stays down, that would be cool (for us). Otherwise, we are currently looking a lot because we are sitting on hot coals. (The developer contract is delayed, and we don’t think it makes much sense to lock in financing beforehand... on the other hand, I’d really like to just put a checkmark behind the financing issue *sigh*). When we first spoke with a financer at the end of June, the KfW124 for 10 years was at 3.45%, and currently at 3.03% effectively. As for other banks, I don't have concrete comparison figures (haven't asked again yet), but in the meantime, even the ads with ideal conditions (60% loan-to-value) were "from 3,x%", now it seems to start at "from 2.69%." The latter has been around for a few days already, so today's changes are certainly not included ;) The banks' own advertisements are also partly going down (my house bank advertised "construction interest rates from 3.30%" three weeks ago, today "from 2.96%"). So I wouldn’t say nothing is changing. And I really should stalk this less, because we can’t/won’t do anything anyway right now *sigh*

What kind of swap are you actually looking at there?

10Y government bond yields fell to 1.04%.

So our 100% financing over 15 years is (according to [Sparkasse]) still at 4% nominal interest rate. We do not notice any reduction yet. There are still 2 weeks left until we have to finalize it.

What kind of swap are you actually looking at there?

Good question, after reading here I just googled "Bundesanleihen SWAP" and looked at the first result and that roughly seems to match what clausen77 is looking at. Although "my" name is probably not quite fitting, because at the moment I'm not sure what it really has to do with German federal bonds....?? (probably little, but google knew what I wanted) The result is apparently the "Euro Int Swap Rate 10Y" or "10 Year EUR Swap Rate" or something like that, which you can probably find elsewhere as well. For my personal curiosity it was enough that fluctuations there usually are also reflected in real estate interest rates (because yada yada something about how banks refinance?) and in my short observation period I would confirm that. But I personally don't know the exact connections there and a quick google search hasn't helped me much so far (and I haven't felt like doing a longer one yet).