The demand for credit from private households has more than halved in recent years. In addition to real estate price increases, increased interest rates were mainly responsible for this. Now the interest rate turnaround has started and loans are becoming cheaper again. However, for many, real estate will likely remain unaffordable. The “Crown” explains why.
Until early 2022, the interest rate policy of the European Central Bank (ECB) ensured that loans could be obtained (almost) free of charge. With variable contracts, the conditions were sometimes less than one percent per year. At the time, fixed loans were paid out because the banks’ refinancing interest rate (Euribor) was even negative – at best well below two percent per year.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
