The four interest rates of the European Central Bank (ECB) in the previous year, the demand for inspired housing loans. At the moment, the population is mainly dependent on fixed -interested loans, as the Austrian National Bank (OENB) has announced on Monday.
89 percent of the borrower decided in 2024. With 3.43 percent, they were cheaper than the loans with variable interest residential buildings with 4.21 percent. Five years earlier, only 60 percent of the living loans were bound.
In the second half of 2024, the European Central Bank (ECB) reduced interest rates in four steps by one percentage point to three percent. As a result, interest rates for new residential loans at the end of the year fell by 0.8 percentage points to 3.51 percent. Especially in the second half of the year, the demand for housing loans increased. The new credit volume was 6.2 billion euros.
Bank deposits also increased
Last year the bank deposits of private households also rose with 19 billion euros. Many people played it safely here and selected bound deposit products. A trend removal for the company has also shown itself to a fixed funds, said Johannes Turner of the Oenb.
Companies also became cheaper in the previous year: the interest rates fell by 1.13 to 3.99 percent. A plus mainly registered long -term company loans.
The next ECB interest rate is on April 17. “You move in a situation that is much opaque than six months ago,” said the substitute of ECB boss Christine Lagade. Among other things, she referred to the new rate of the US government.
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.
