Construction costs are currently skyrocketing

As much as I think that the so-called SWAP belongs here, I have so little knowledge about it and always think to myself: "What a silly term."

Then let's just call it the bank's refinancing rate ;). Everyone understands that

Construction loan interest rates lag about 2 weeks behind the refinancing rates. Therefore, construction loan interest rates are likely to rise significantly again in the coming weeks. The reason for this is probably the persistently high inflation as well as the outlook from the US central bankers at the end of last week for further increases in key interest rates. To avoid weakening the euro further, the ECB will also have to raise rates.

More and more builders are canceling projects.

I also heard that from the environment yesterday. Both from carpentry companies and electricians.

So everything in our environment continues as usual. Those who wanted to build are building and following through. Now and then there are complaints that materials are missing or delivery times are long, but I am not aware of budgets being exceeded or projects being questioned beforehand.

With us, the financing interest rates for larger amounts in the machinery trade are now over 5 percent for terms longer than 6 years. And these are still special offers. So since these are mid six-figure amounts, similar to those of a single-family house, the sale is becoming increasingly difficult.