Interest Rate Development Forecast

Not rush house purchase – interest on the mortgages remain continue constant Berlin, 01.11.2011 – prospective home buyers and builders should consider calmly currently whether the target property is optimally designed and based on secure financial planning. The interest-rate markets because of the crisis of the euro are currently in a phase in which expert opinion no deterioration of the financing costs of real estate financing is expected. Thus so that the planned acquisition or the construction of this site has no deadline pressure, those interested should use for a comprehensive review of their project. Was enough equity really saved? Were all possibilities in terms of optimization and flexibilization, tested and implemented if necessary? Currently some financial market opportunities, to create your own real estate cheaper and with less risk. The current interest rate situation the leveraged EU guarantees for the historical financial disaster in Greece have a momentous impact the European financial markets. Nobody could expect such violent impacts on the stability measures until then still at the beginning of the year 2011. Interest rate increases by the ECB in April and June 2011 on now would show current downstream effect 1.50% normally on the lease – but the increasing anxiety of investors fueled an increasing willingness to invest in bonds and real estate in the country of the largest credit guarantor of the EU: Germany.

The increasing competitive pressure among banks and insurers, as well as the funds continue to cheap to be had for German guarantees construction interest rates that are so low, allowed already in the past 3 quarter that there is hardly any historical comparisons. Short-term loans are currently available for less than 3%. The overall situation implies that the probability of an interest rate hike is currently lower than for a cut. The economic development is more than ever under observation by the Eagle eyes of the monetary authorities, who will act accordingly if necessary.

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