The mortgage interest rate in Germany decreased notably between 2013 and 2022, falling below *** percent. This was part of an overall trend of falling mortgage interest rates in Europe. The mortgage interest rate in Germany has since increased to *** percent in the first quarter of 2025. The German mortgage market In Europe, Germany is the second-largest mortgage market, with a total value of mortgages outstanding amounting to nearly *** trillion euros. Mortgage loans are one of the oldest bank products. Among the factors that influence mortgage interest rates are inflation, economic growth, monetary policies, the bond market, the stability of lenders, and the overall conditions of the housing market. Mortgage loans The higher cost of borrowing has a significant effect on the market: While the interest rates were at their lowest, mortgage lending was on the rise. In 2023, when the rates reached a 10-year-high, the quarterly gross mortgage lending fell to the lowest value since 2014. Meanwhile, house prices have also increased substantially in recent years. According to the House Price Index in Germany, between 2015 and 2024, house prices increased by nearly ** percent.

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 **** 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 March 2025 at **** percent, while floating rate mortgages up to one year were the most expensive at **** percent. Mortgages with over **-year fixed period – the most popular loan type among homebuyers — had an interest rate of **** percent. Why did mortgage rates in Germany increase? In 2022, the annual 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.

Bank Lending Rate in Germany increased to 3.95 percent in September from 3.92 percent in August of 2025. This dataset provides the latest reported value for - Germany Bank Lending Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Residential mortgage lending in Germany plummeted in 2022, amid an increase in mortgage rates. With interest rates gradually increasing as a response to the rising inflation, the mortgage market cooled. After reaching a low of around **** billion euros in February 2023, the value of new mortgage loans has gradually increased again, parallel to a decline in interest rates. In September 2025, new mortgage lending stood at about **** billion euros. During the observation period, 10-year fixed rate mortgages accounted for nearly half of mortgage lending, followed by 5 to 10 year fixed rate mortgages. More information on the Mortgage market in Western European countries can be found here.

Key information about Germany Bank Lending Rate

• Germany Bank Lending Rate was reported at 3.950 % pa in Sep 2025.
• This records an increase from the previous number of 3.920 % pa for Aug 2025.
• Germany Bank Lending Rate data is updated monthly, averaging 3.060 % pa from Jan 2003 to Sep 2025, with 273 observations.
• The data reached an all-time high of 6.550 % pa in Dec 2007 and a record low of 1.760 % pa in Oct 2021.
• Germany Bank Lending Rate data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Bank Lending Rate: Monthly.

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

The annual average interest rate on new residential loans in Germany generally decreased between 2007 and 2023, with some fluctuation. It declined from **** percent in 2007 to **** percent in 2021. In 2023, it significantly rose to **** percent, the highest rate recorded since 2010. Nevertheless, this rate varied for different loan types, with floating mortgage rates being the most expensive as of October 2023.

View yearly updates and historical trends for Germany Lending Interest Rate. Source: World Bank. Track economic data with YCharts analytics.

The total amount of outstanding residential mortgage lending in Germany grew quarterly since the second quarter of 2014. This value increased to nearly *** trillion euros by the fourth quarter of 2024. Along with the United Kingdom and France, Germany was one of three European countries that exceeded *** trillion in outstanding residential mortgage lending.

The value of residential mortgage lending in Germany increased in 2024, following a period of decline and stabilization. In the first quarter of 2025, the value of new loans reached **** billion euros, up from **** billion euros the same quarter a year ago.The worsening economic conditions, higher interest rates, and the lack of affordable housing are among the factors leading to the decline in mortgage lending. Nevertheless, Germany is among the largest mortgage markets in Europe. More information on the Mortgage market in Western European countries can be found here.

View monthly updates and historical trends for Germany Long Term Interest Rate. Source: European Central Bank. Track economic data with YCharts analytics.

The table below showcases the 10th, 25th, 50th, 75th, and 90th percentiles of mortgage rates for each zip code in New Germany, Minnesota. It's important to understand that mortgage rates can vary greatly and can change yearly.

Germany - Overcrowding rate: Owner, no outstanding mortgage or housing loan was 2.70% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Overcrowding rate: Owner, no outstanding mortgage or housing loan - last updated from the EUROSTAT on December of 2025. Historically, Germany - Overcrowding rate: Owner, no outstanding mortgage or housing loan reached a record high of 2.90% in December of 2023 and a record low of 1.10% in December of 2013.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

Germany - Housing cost overburden rate: Owner, with mortgage or loan was 14.50% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on December of 2025. Historically, Germany - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 15.60% in December of 2023 and a record low of 7.70% in December of 2020.

Discover the booming European home mortgage finance market! This in-depth analysis reveals a €500B+ market with a CAGR exceeding 6%, driven by demographics, government incentives, and low-interest rates. Explore key trends, segments (home purchase, refinance, providers), and leading companies. Get insights for investment and strategic planning. Recent developments include: November 2022: Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies, today introduced a conventional loan option for Americans interested in purchasing or refinancing a manufactured home., November 2022: The Council of Europe Development Bank (CEB) approved four new loans worth EUR 232.5 million to boost affordable housing and other social sector development. Under this, it offered EUR 25 million in loans to Kosovo to finance the 'Adequate Social Housing Programme' to establish a sustainable social and affordable housing system in the country.. Notable trends are: Increased Number of Salaried Individuals is Driving the Market Growth.

Germany - Severe housing deprivation rate: Owner, with mortgage or loan was 0.30% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Severe housing deprivation rate: Owner, with mortgage or loan - last updated from the EUROSTAT on November of 2025. Historically, Germany - Severe housing deprivation rate: Owner, with mortgage or loan reached a record high of 0.90% in December of 2018 and a record low of 0.10% in December of 2020.

Germany: Interest rates on bank credit to the private sector: The latest value from is percent, unavailable from percent in . In comparison, the world average is 0.00 percent, based on data from countries. Historically, the average for Germany from to is percent. The minimum value, percent, was reached in while the maximum of percent was recorded in .

The share of homeowners with a mortgage or loan in Germany decreased in 2024. Around **** percent of German households had a mortgage that year. This was an decrease from the previous year, when **** percent of households had a mortgage loan.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.