Mortgage rates increased at a record pace in 2022, with the 10-year fixed mortgage rate doubling between March 2022 and December 2022. With inflation increasing, the Bank of England introduced several bank rate hikes, resulting in higher mortgage rates. In September 2023, the average 10-year fixed rate interest rate reached 5.1 percent. As borrowing costs get higher, demand for housing is expected to decrease, leading to declining market sentiment and slower house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold declined in 2022, reaching close to 1.3 million. Despite the number of transactions falling, this figure was higher than the period before the COVID-10 pandemic. The falling transaction volume also impacted mortgage borrowing. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans fell year-on-year for fourth straight quarters in a row. How are higher mortgages affecting homebuyers? Homeowners with a mortgage loan usually lock in a fixed rate deal for two to ten years, meaning that after this period runs out, they need to renegotiate the terms of the loan. Many of the mortgages outstanding were taken out during the period of record-low mortgage rates and have since faced notable increases in their monthly repayment. About five million homeowners are projected to see their deal expire by the end of 2026. About two million of these loans are projected to experience a monthly payment increase of up to 199 British pounds by 2026.

The rate on 15-year fixed rate mortgages in the United States decreased in the period after the Great Recession and reached its lowest level in 2021, followed by a steep increase in the next two years. In the early 1990s, the rate on a 15-year fixed rate mortgage was between six and nine percent. The rate then fell to 2.27 percent in 2021. After the Federal Reserve introduced several bank rate hikes to tackle the rising inflation, the mortgage rate soared to 6.11 percent - the highest rate observed since 2008. The rate for 30-year fixed mortgages and five-year ARM mortgages followed a similar trend.

In the United States, interest rates for all mortgage types started to increase in 2021. This was due to the Federal Reserve introducing a series of hikes in the federal funds rate to contain the rising inflation. In the first quarter of 2024, the 30-year fixed rate declined slightly, to 6.75 percent. Despite the cut, this was about 3.9 percentage points higher than the same quarter in 2021. Why have U.S. home sales decreased? Cheaper mortgages normally encourage consumers to buy homes, while higher borrowing costs have the opposite effect. As interest rates increased in 2022, the number of existing homes sold plummeted. Soaring house prices over the past 10 years have further affected housing affordability. Between 2013 and 2023, the median price of an existing single-family home risen by about 88 percent. On the other hand, the median weekly earnings have risen much slower. Comparing mortgage terms and rates Between 2008 and 2023, the average rate on a 15-year fixed-rate mortgage in the United States stood between 2.28 and 6.11 percent. Over the same period, a 30-year mortgage term averaged a fixed-rate of between 3.08 and 6.81 percent. Rates on 15-year loan terms are lower to encourage a quicker repayment, which helps to improve a homeowner’s equity.

After a period of record-low mortgage interest rates, the cost of mortgage borrowing in Germany surged in 2022. In 2019, mortgage rates declined notably, falling as low as 1.16 percent in December 2020. This downward trend reversed in 2021, as mortgage rates started to gradually pick up. Five-to-ten-year mortgage loans had the lowest rates in October 2023 at 3.85 percent, while floating rate mortgages up to one year were the most expensive at 5.53 percent. Mortgages with over 10-year fixed period – the most popular loan type among homebuyers - had an interest rate of 3.9 percent.

Why did mortgage rates in Germany increase?

In 2022, the yearly inflation rate in Germany experienced a swift rise, prompting the central bank to raise interest rates to counter this surge. The European Central Bank (ECB) is responsible for determining Germany's central bank interest rate. In July 2022, following a prolonged period of stability, the average interest rates in Germany began a steady rise, which persisted consistently thereafter.  This increase is intended to stabilize prices, but it also means higher borrowing costs for those seeking mortgages.

Downturn in Germany's home loan borrowing

From 2022 onward, the gross residential mortgage lending in Germany fell dramatically. Besides the higher interest rates, the downturn can be explained by the slowed pace of economic growth, which makes individuals and businesses more cautious about big investments such as buying a home. Additionally, the German housing market suffers a chronic undersupply, meaning that homebuyers often struggle to find an affordable home to purchase.

In March 2025, the median interest rate of 10-year fixed rate housing loans provided by city banks in Japan stood at 4.34 percent. City banks are among the largest banks in Japan.

The 10-year treasury constant maturity rate in the U.S. is forecast to decline by 0.8 percent by 2026, while the 30-year fixed mortgage rate is expected to fall by 1.6 percent. From seven percent in the third quarter of 2023, the average 30-year mortgage rate is projected to reach 5.4 percent in 2026.

Mortgage rates in the Netherlands increased sharply in 2022 and 2023, after declining gradually between 2008 and 2021. In December 2022, the average interest rate for new mortgage loans stood at 1.65 percent, and by the end of 2023, it had risen to 4.13 percent. The 10-year interest rate was the lowest, at 2.96 percent; the floating and less than one-year interest rates amounted to 5.13 and 4.62 percent, respectively. In early 2024, mortgage rates decreased notably. Are mortgage rates in the Netherlands different from those in other European countries? When comparing this ranking to data that covers multiple European countries, the Netherlands’ mortgage rate was similar to the rates found in Spain, the United Kingdom, and Sweden. It was, however, a lot lower than the rates in Eastern Europe. Hungary and Romania, for example, had some of the highest mortgage rates. For more information on the European mortgage market and how much the countries differ from each other, please visit this dedicated research page. How big is the mortgage market in the Netherlands? The Netherlands has overall seen an increase in the number of mortgage loans sold and is regarded as one of the countries with the highest mortgage debt in Europe. The reason behind this is that Dutch homeowners were able to for many years to deduct interest paid from pre-tax income (a system known in the Netherlands as hypotheekrenteaftrek). Total mortgage debt of Dutch households has been increasing year-on-year since 2013.

Austria Lending Rate: NB: Households: Mortgage: Rate Fixation: Over 10 Years data was reported at 3.270 % pa in Jan 2025. This records a decrease from the previous number of 3.360 % pa for Dec 2024. Austria Lending Rate: NB: Households: Mortgage: Rate Fixation: Over 10 Years data is updated monthly, averaging 3.530 % pa from Jan 2003 (Median) to Jan 2025, with 265 observations. The data reached an all-time high of 6.070 % pa in Feb 2005 and a record low of 1.330 % pa in Oct 2021. Austria Lending Rate: NB: Households: Mortgage: Rate Fixation: Over 10 Years data remains active status in CEIC and is reported by Oesterreichische Nationalbank. The data is categorized under Global Database’s Austria – Table AT.M006: Lending Rates.

The benchmark interest rate in Ireland was last recorded at 4.50 percent. This dataset provides - Ireland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in Japan was last recorded at 0.50 percent. This dataset provides - Japan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Interest Rates and Price Indexes; Commercial Real Estate Price Index, Level (BOGZ1FL075035503A) from 1945 to 2024 about real estate, commercial, interest rate, interest, rate, price index, indexes, price, and USA.

Belgium Lending Rate: New Business: HH: Mortgage Credit: Fixed Rate: Over 10 Years data was reported at 2.890 % pa in Dec 2024. This records a decrease from the previous number of 2.970 % pa for Nov 2024. Belgium Lending Rate: New Business: HH: Mortgage Credit: Fixed Rate: Over 10 Years data is updated monthly, averaging 3.570 % pa from Jan 2003 (Median) to Dec 2024, with 264 observations. The data reached an all-time high of 5.660 % pa in Jan 2003 and a record low of 1.330 % pa in May 2021. Belgium Lending Rate: New Business: HH: Mortgage Credit: Fixed Rate: Over 10 Years data remains active status in CEIC and is reported by National Bank of Belgium. The data is categorized under Global Database’s Belgium – Table BE.M005: Lending Rate.

The interest rate for new mortgages in Belgium with over ten years initial rate fixation started to decline in 2024, after reaching its peak at 3.6 percent at the end of 2023. In October 2024, it decline to 3.03 percent, which was 0.44 percent lower than the previous year. In April 2024, the outstanding number of mortgage credits in Belgium had reached over 3.3 million.

Key information about China Long Term Interest Rate

• China Treasury Bond Yield: Interbank: Spot Yield: 10 year was reported at 1.64 % pa in Jan 2025, compared with 1.69 % pa in the previous month.
• China Long Term Interest Rate data is updated monthly, available from Jul 2008 to Jan 2025.
• The data reached an all-time high of 4.63 % pa in Dec 2013 and a record low of 1.64 % pa in Jan 2025.
• Long Term Interest Rate is reported by reported by National Interbank Funding Center.

• In the latest reports, China Short Term Interest Rate: Month End: SHIBOR: 3 Months was reported at 1.70 % pa in Jan 2025.
• The cash rate (Policy Rate: Month End: China: Rediscount Rate) was set at 2.65 % pa in Jun 2023.
• China Exchange Rate against USD averaged 7.16 (USD/RMB) in Jun 2023.

Uzbekistan Lending Rate: FC: Long Term Loans: Over 10 Years data was reported at 4.578 % pa in Oct 2018. This records an increase from the previous number of 4.054 % pa for Sep 2018. Uzbekistan Lending Rate: FC: Long Term Loans: Over 10 Years data is updated monthly, averaging 3.000 % pa from Jan 2013 (Median) to Oct 2018, with 70 observations. The data reached an all-time high of 5.332 % pa in Feb 2017 and a record low of 2.500 % pa in Jun 2018. Uzbekistan Lending Rate: FC: Long Term Loans: Over 10 Years data remains active status in CEIC and is reported by Central Bank of the Republic of Uzbekistan. The data is categorized under Global Database’s Uzbekistan – Table UZ.M003: Lending Rate: Weighted Average.

After a period of gradual decline, the average annual rate on a 30-year fixed-rate mortgage in the United States rose to 6.81 percent in 2023, up from the record-low 2.96 percent in 2021. The rate for 15-year fixed mortgages and five-year ARM mortgages followed a similar trend. This was a result of the Federal Reserve increasing the bank rate - a measure introduced to tackle the rising inflation. U.S. home prices going through the roof Mortgage rates have a strong impact on the market – the lower the rate, the lower the loan repayment. The rate on a 30-year fixed-rate mortgage decreasing after the Great Recession has stimulated the market and boosted home sales. Another problem consumers face is the fact that house prices are rising at an unaffordable level. The median sales price of a new home sold surged in 2021, while the median weekly earnings of a full-time employee maintained a more moderate increase. What are the differences between 15-year and 30-year mortgages? Two of the most popular loan terms available to homebuyers are the 15-year fixed-rate mortgage and the 30-year fixed-rate mortgage. The 30-year option appeals to more consumers because the repayment is spread out over 30 years, meaning the monthly payments are lower. Consumers choosing the 15-year option will have to pay higher monthly payments but benefit from lower interest rates.

Key information about Germany Long Term Interest Rate

• Germany Long Term Interest Rate: Month Avg: Germany: ECB Harmonised was reported at 2.18 % pa in Dec 2024, compared with 2.31 % pa in the previous month.
• Germany Long Term Interest Rate data is updated monthly, available from Jan 1990 to Dec 2024.
• The data reached an all-time high of 9.09 % pa in Oct 1990 and a record low of -0.65 % pa in Aug 2019.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, Germany Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 3.15 % pa in Dec 2024.
• Germany Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.

Argentina Loans to NFPS: FC: Mortgage: 5 to 10 Year: Fixed & Renegotiable Interest data was reported at 43.000 USD th in Sep 2018. This records a decrease from the previous number of 600.000 USD th for Aug 2018. Argentina Loans to NFPS: FC: Mortgage: 5 to 10 Year: Fixed & Renegotiable Interest data is updated monthly, averaging 1,274.000 USD th from Jun 1993 (Median) to Sep 2018, with 304 observations. The data reached an all-time high of 149,774.000 USD th in Dec 1997 and a record low of 0.000 USD th in Nov 2017. Argentina Loans to NFPS: FC: Mortgage: 5 to 10 Year: Fixed & Renegotiable Interest data remains active status in CEIC and is reported by Central Bank of Argentina. The data is categorized under Global Database’s Argentina – Table AR.KB013: Loans to Non Financial Private Sector.

Poland State Treasury Debt: by Holder: CB: DS: MK: Bonds: 10 Years Fixed Rate data was reported at 43,868.184 PLN mn in Sep 2018. This records an increase from the previous number of 41,195.083 PLN mn for Aug 2018. Poland State Treasury Debt: by Holder: CB: DS: MK: Bonds: 10 Years Fixed Rate data is updated monthly, averaging 19,473.321 PLN mn from Dec 1999 (Median) to Sep 2018, with 225 observations. The data reached an all-time high of 43,868.184 PLN mn in Sep 2018 and a record low of 113.130 PLN mn in Feb 2000. Poland State Treasury Debt: by Holder: CB: DS: MK: Bonds: 10 Years Fixed Rate data remains active status in CEIC and is reported by Ministry of Finance. The data is categorized under Global Database’s Poland – Table PL.F016: State Treasury Debt: by Holder.

Croatia Lending Rate: CC: ML: over 10 Years Initial Fixation data was reported at 2.610 % pa in Dec 2022. This records a decrease from the previous number of 3.500 % pa for Nov 2022. Croatia Lending Rate: CC: ML: over 10 Years Initial Fixation data is updated monthly, averaging 3.910 % pa from Dec 2011 (Median) to Dec 2022, with 133 observations. The data reached an all-time high of 5.970 % pa in Jan 2013 and a record low of 2.060 % pa in Apr 2022. Croatia Lending Rate: CC: ML: over 10 Years Initial Fixation data remains active status in CEIC and is reported by Croatian National Bank. The data is categorized under Global Database’s Croatia – Table HR.M007: Credit Institutions Lending Rates: New Business: Households (Discontinued).