Construction costs are currently skyrocketing

Where exactly do you plan to build and with whom? We ourselves will also start soon in the region (Soest/Paderborn) and are now practically just before the building application.

We are building in Geseke. I am reluctant to publish the name of a local general contractor here including the offer price in the forum. Unfortunately, I cannot message you via PM. But you are welcome to contact me by email. For that, just add “@gmail.com” to my username.

NTV: 5 percent construction interest rates are possible ...

Many things are possible. But contrary to popular belief, there is no direct connection between the key interest rate at the short end of the yield curve and long-term real estate interest rates. In particular, it is possible that expectations are already priced in at longer maturities, while the key interest rate is directly controlled by the central bank.

It certainly won't get any cheaper in the coming years.

Many things are possible. But contrary to what is believed, there is no direct connection between the key interest rate at the short end of the yield curve and long-term real estate interest rates. In particular, it is possible that expectations are already priced into the longer maturities, while the key interest rate is directly controlled by the central bank

Whether direct or indirect connection is irrelevant at first. The planned renewed increase of the key interest rate does not leave mortgage rates unaffected. And for the future, it doesn't matter whether mortgage rates are 5.0 or "only" 4.7 %. Many potential homebuilders will doubt their plans even more because of facts like key interest rate hikes.

The planned renewed increase of the key interest rate does not leave mortgage rates unaffected.

That is not correct. Look at the last few interest rate hikes; mortgage rates moved in all directions afterwards. Since around Easter, they have been within a corridor of 3.5-4% and fluctuate there. No matter what the ECB does.

The fixed interest period for the financing of my son's property expires in December 23. The bank has already offered me a follow-up financing at 3.7%. I therefore think that the banks are not expecting rising mortgage rates. I have little knowledge of the subject, but if fewer and fewer people are taking out construction loans, shouldn't there be some competition between the banks and shouldn't there be banks that offer cheaper financing, just slightly above the base rate?