Residential builders and potential housing interests must now adapt to an interest duration: for the first time in years, fixed interest rates are somewhat more expensive than variable and the difference should continue to increase, the financing advisor Infina calculates. That is why the credit demand is increasing again.
According to the Infina Kreditandex (IKI), a market sample of twelve credit institutions, the variable loan interest rates decreased from 3.874 percent to 3.505 percent in the first quarter of 2025. This corresponds to a decrease of 0.369 percent points. According to IKI, the nominal interest rates for 20 years of fixed interest rates rose by 0.3 percentage points to 3,828 percent in the first quarter of 2025. This is the highest level since July 2024.
This has been converted into the monthly reimbursement, this means: for 100,000 euros you now pay around 535 euros in 20 years, on the other hand, “only” around 517 euros.
The “upside down” interest rate curve, in which the long -term loans were even cheaper in the last few years, was even cheaper than fluctuating with the market, starts to normalize. In the meantime, 20-year-old bonds with fixed interest rates are again approximately 0.3 percentage points more expensive than conventional variable interest-bearing residential loans. A look at the latest development makes change clear.
So the conditions for loans have changed:
Normalization of the interest curve continues
On April 2, 2024, the interest rates of variable loans were 5,071 percent, while ten years of fixed interest rates were 3,766 and 20-year-olds at 3,823 percent. A year later, currently at the end of March 2025, there are variable interest rates of an average of 3.505 percent, the fixed interest rates for ten years are 3.664 and 3,828 percent for 20 years. The earlier price advantage for long -term bindings has again become moderate surcharges, in particular 0.159 and 0.323 percentage points. As before, long interest insurance has a price again.
ECB should lower the most important interest rate
And due to the expectation that the European Central Bank should continue to lower the most important interest rate and therefore the variable financing would be a bit cheaper, Infina -Baas Christoph Kirchmaz is calculating that the interest advantage will be even greater.
Council of the Expert
His advice: the distance is still low. If you want to keep the risk of your living loan low, you still have to choose a fixed interest rate. “In this situation, medium to long -term fixed interest rates borrowers offer a high level of security.” Independent advice from financing experts is recommended.
In general, the question raises the question, the National Bank reports. In January and February, around 1.1 billion euros were awarded to new housing loans to private customers. That was 50 percent more than in the previous 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.
