Rising Interest Rates Stall Germany's Mortgage Lending MarketThe German mortgage market is experiencing a period of stagnation as higher interest rates discourage both homebuyers and those seeking to build new properties. The cooling in mortgage activity is largely attributed to a combination of elevated interest rates and stable to slightly rising property prices. Average ten-year fixed mortgage rates reached approximately 3.9 percent at the end of last year, the highest level observed in over two years. The mortgage sector had witnessed a boom up until the spring of 2022, fueled by historically low interest rates. While the European Central Bank's key interest rates have remained at moderate levels, broader economic factors--such as rising government debt levels--have contributed to higher capital market rates.

Source: The Munich Eye February 04, 2026 16:42 UTC