montessalet
2022-04-06 22:34:10
- #1
And an end (to the increases) is not in sight.Our local banks (e.g. the Sparkasse) now all have an interest rate of 3.x % for 20-25 years fixed-rate loans. That is almost 2% more than in January.
Construction costs are currently skyrocketing
- Erstellt am 2021-04-23 10:46:58
Scout**
2022-04-06 22:47:39
- #2
Yes! The federal government auctions them for a nominal value of 100 euros. That means you receive 100 euros at the end of the term and do not get explicit interest during the period. If the bond is auctioned for 100, the interest rate is exactly 0. At 102 euros, as a few months ago, the interest rate is slightly negative (just under -0.2%). But if the federal government receives only 93 euros as now and has to pay back 100 in 10 years, that is effectively +0.6x interest! PS: please remove the link, it is not allowed here!currently at a historically low level. Or am I misinterpreting something here?
WilderSueden
2022-04-06 22:57:56
- #3
It's a little bit more complicated because besides the current price, you also have the coupon, that is, the regular interest payment. And then it can happen that you have combinations like "sold at 105, coupon 1%." You’re glad that there are computers that calculate the yields from that.
To estimate mortgage rates, the 10-year swap is the better choice. And there you can also see how steeply it is rising right now
To estimate mortgage rates, the 10-year swap is the better choice. And there you can also see how steeply it is rising right now
cryptoki
2022-04-06 23:03:01
- #4
Crazy. That should slowly have an impact on new construction projects. With 500k and 6% (3,x interest and 2,x repayment) that's an easy 2,500€ per month in installments. Who can still afford that…Our local banks (e.g. Sparkasse) now all offer a 3,x % interest rate on 20-25 year fixed interest periods. That is almost 2% more than in January.
Scout**
2022-04-06 23:16:19
- #5
Wow. This is likely to start affecting new construction projects. With 500k and 6% (3.x interest and 2.x repayment), that's an easy €2,500 per month in installments. Who can still afford that…
DINKS or dual full-time earners with older children: one salary goes to the mortgage payment, you live off the second.
Gecko1927
2022-04-06 23:26:47
- #6
Why was my post deleted because it contains a link? Why can you even post links if they are forbidden? Such functions can also be blocked...
On the topic:
My parents' generation built with 8-9%, but at different (relative) prices.
So if interest rates continue to rise, prices cannot remain at this level in the long term. The demand for construction timber, insulation, etc. will collapse massively if you have to pay 4% interest on these prices.
My parents' generation lives in >200sqm houses with lots of trimmings that were expensive back then and unaffordable today; back then, they saved at most on insulation.
Today, I see posts here where people with 140sqm and 2 children still cut the basement and the garage from the budget.
Either everything settles again to "normal" conditions in the long term or the single-family house will simply become extinct.
On the topic:
My parents' generation built with 8-9%, but at different (relative) prices.
So if interest rates continue to rise, prices cannot remain at this level in the long term. The demand for construction timber, insulation, etc. will collapse massively if you have to pay 4% interest on these prices.
My parents' generation lives in >200sqm houses with lots of trimmings that were expensive back then and unaffordable today; back then, they saved at most on insulation.
Today, I see posts here where people with 140sqm and 2 children still cut the basement and the garage from the budget.
Either everything settles again to "normal" conditions in the long term or the single-family house will simply become extinct.