Construction costs are currently skyrocketing

At the peak of the interest rate swap, I had requested an offer (nobody knows beforehand). 4.03% nominal was on the table. Just received a call, the bank's "improvement" to 3.15% nominal with otherwise the same conditions.

Sounds good at first and the rate is also significantly more comfortable that way! How is it going for you, did you mainly talk to one bank? Did you only request conditions there, or did you basically already have a loan offer with a contract lying around that you are now still postponing?

The volatile situation is also making me more nervous right now. At the moment, it looks like we will be able to sign a contract with the developer at the earliest in mid-September (originally, the statement was "probably August" but that has already been discarded...) and the financing situation continues to make me nervous :/

Sounds good at first and the rate is also significantly more pleasant that way! How is it going with you, did you mainly have talks with one bank? Did you only request conditions there or did you basically already have a loan offer with a contract that you are now delaying after all?

The volatile situation is making me even more nervous right now. Currently it looks like we can conclude a contract with the developer at the earliest in mid-September (originally the statement was "probably August" but that has already been discarded...) and the financing situation is making me even more nervous :/

I'll keep it short: We're getting married soon (we would have anyway, but no longer this year) to buy the terraced house from my parents completely free of real estate transfer tax. This is all quite time-critical because my parents are involved in a developer project for an age-appropriate new apartment and the money must be available at the start of construction there.

That's why I spoke with the financial advisor, who is also marketing the developer project, and pushed to accelerate things somewhat. Result: 4.03% nominal interest on 15 years at 100% and 380k.

In retrospect, we had caught the absolute peak of the 10-year swap. Nobody knew at the time ("at the time" is funny because it was only a few weeks ago).

Then we saw the swap rate decline and without any action from us the Sparkasse slowed down because they kept requesting documents repeatedly. I also asked the competition, where I already got 3.5%. Passed on the information, and now it’s suddenly 3.15% instead of 4.03%, the same bank as before.

So yes, via competition (Interhyp), which I also made transparent, we “applied pressure” (though I don’t consider this pressure, I expect that from professionals as a daily business).

But now the building permit is delayed by 1-2 months, so we COULD even wait longer. What do the crystal balls say? Will it go down further, the economic situation isn’t that great after all. But we can’t wait out the difficult winter which might push rates down even more.

Back then we almost paid the peak level because we acted too quickly. But that could also go the other way tomorrow… it’s making me a bit crazy.

The savings of almost a whole percentage point is already crazy. No one has a crystal ball, my financial advisor says it will stabilize around 4 percent, but no one will say for sure. In the end, there is this one momentum that can overturn all assumptions.

Saving almost a whole percentage point is already crazy. No one has a crystal ball, my financial advisor thinks it will level off around 4 percent, but no one will say for sure. In the end, there is this one momentum that can overturn all assumptions.

It will forever remain a mystery to me why (small) financial advisors and the like believe they can predict fundamental economic figures better than the market, or why one should trust their predictions.

Especially since the mortgage interest rates theoretically still have to follow (downwards), as the swap has fallen again in the last two weeks from 2.07 to 1.59.

And anyone who believes that real estate prices are falling is mistaken for exactly that reason. Even the worst residential area here now has a cold rent of 10-11€ per m2. With additional costs, you're paying 800-900€ for a 50m2 apartment.

Prices are currently falling almost everywhere. Somehow they seem not to have received your memo. ;)