Hard to say, but it’s going down because market participants’ expectations are dropping. They probably don’t believe that the ECB will carry out the hikes as announced.
The further increases will come, that should be pretty clear after +0.5% instead of 0.25%. But it has often been said that construction loan interest rates do not primarily follow the key interest rate ("the short end") but rather tend to align with the yields of the 10-year bonds ("the long end"). And those are currently losing yield because the recession is approaching in large strides. The interest rates for real estate loans are therefore falling because the economic situation is rapidly deteriorating. But at the same time, the risks for banks are also rising, so they will certainly apply larger surcharges on the interest rates—and will not simply fall back to 2%. The banking lending survey shows pretty gloomy clouds in my opinion, and only a few have not noticed the turnaround in the real estate market. And there is no sign of relief in inflation either.
In any case, exciting times, in the sense of the Chinese proverb..