The mortgage interest rate in Germany decreased notably between 2013 and 2022, falling below 1.5 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 3.9 percent in the second quarter of 2024. The German mortgage market In Europe, Germany is the second-largest mortgage market, with a total value of mortgages outstanding amounting to over 1.8 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 2022, house prices increased by over 60 percent.

Mortgage interest rates in Italy decreased substantially between 2013 and 2021 before rising in the following years. The second quarter of 2024, the mortgage interest rates amounted to 3.55 percent - lower than the rate in the same period in the previous year. A slowly recovering market Despite not reaching the pre-crisis levels, an increase in the number of transactions in the residential real estate market as well as the volume of mortgages stipulated for house purchase indicate a positive trend for the sector in Italy. Homeownership in Italy reached 73.7 percent in 2021, one of the highest rates in Western Europe. Low interest rates, especially when compared to other European countries, and decreasing house prices led to a renewed interest in the real estate market in Italy. Milan, an attractive destination for investments In recent years, more than in the past, thanks to its role as a capital of business and finance as well as an innovation hub, Milan was able to attract human capital and investments, both domestic and foreign. This ability to grow and innovate was also reflected in the real estate market, which was the most dynamic in the country. Transactions in residential real estate in Milan increased steadily since 2012, except for 2020, and so did prices: some areas of the city are among the most expensive in the country to buy a property.

Graph and download economic data for 15-Year Fixed Rate Mortgage Average in the United States (MORTGAGE15US) from 1991-08-30 to 2025-03-20 about 15-year, fixed, mortgage, interest rate, interest, rate, and USA.

Historical dataset of the daily level of the federal funds rate back to 1954. The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate.

In 2022, Portugal overturned the sinking mortgage interest rate it had gone through during the coronavirus (COVID-19) pandemic. The country did not escape from the overall trend of falling mortgage interest rates observed in Europe during the COVID-19 crisis, which positioned national mortgage interest rates at 1.54 percent in the fourth quarter of 2021.

Interest rates as a weapon against inflation

Even though interest rates are affected by economic growth, monetary policies, the bond market, the stability of lenders, and the overall conditions of the housing market, inflation currently leads the European Central Bank (ECB)’s decisions regarding them. As inflation has been low in Europe since the 2008 financial crisis, the ECB lowered interest rates in an attempt to promote economic growth. However, the economic difficulties brought up by the coronavirus pandemic and the Russian-Ukrainian war have fueled inflation. To counteract this rise, the ECB increased interest rates. Portugal’s abrupt rise in interest rates on new residential loans from 0.83 percent in 2021 to 3.24 percent in 2022 demonstrates the balanced and calculated act between the two financial indices.

High interest rates and low mortgage lending

Compared to other European nations, Portugal has a low gross residential mortgage lending. In the third and fourth quarters of 2022, mortgage lending decreased in the country due to rising interest rates and worsening economic conditions. Despite being in a rising trajectory in terms of outstanding residential mortgage lending since the second quarter of 2021, 2023 registered decreasing figures caused by the same economic contingencies.

The benchmark interest rate in China was last recorded at 3.10 percent. This dataset provides the latest reported value for - China Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The real interest rate in Malaysia increased by 9.7 percentage points compared to the previous year. Therefore, the real interest rate in Malaysia reached a peak in 2023 with 7.32 percent. Real interest rate is the adjusted lending interest rate to remove the effects of inflation, as measured by the GDP deflator (implicit price deflator).Find more statistics on other topics about Malaysia with key insights such as number of automated teller machines (ATMs), deposit interest rate, and broad money as a percentage of GDP.

Serbia RS: Real Interest Rate data was reported at 4.079 % pa in 2014. This records an increase from the previous number of 3.644 % pa for 2013. Serbia RS: Real Interest Rate data is updated yearly, averaging -3.534 % pa from Dec 2002 (Median) to 2014, with 13 observations. The data reached an all-time high of 4.079 % pa in 2014 and a record low of -12.507 % pa in 2002. Serbia RS: Real Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Serbia – Table RS.World Bank.WDI: Interest Rates. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator.; ;

It can be seen that the mortgage interest rate in Poland increased overall during the period under observation, reaching a value of 7.2 percent as of the fourth quarter of 2023. Demand for mortgage loans in Poland      Despite the tightening of credit policy by banks, the demand for mortgage loans is not decreasing. The residential market has also seen increases both in sales and in the construction of new premises. The increase in salaries combined with the decrease in the mortgage loan cost results in Poles having no problems buying apartments despite high prices. Higher wages also affect their creditworthiness, which is essential when applying for a mortgage. The value of housing loans amounted to a record 442.7 billion zloty in 2019. Despite a decrease in 2017, the value of debt in 2019 increased by 6.6 percent compared to the previous year. The increase in wealth has also been reflected in the average value of mortgages. In 2021, Bank Millennium granted the largest number of mortgages to Poles, although Bank PKO BP was the leader in terms of value.   Demand for housing in Poland      Despite a growing number of flats, the prices are not falling, but on the contrary, they are continually rising. An increase in prices was recorded in every major city. The annual rise in prices in many cities went up between 12 and 14 percent. The most significant price increase on the primary market was recorded in Warsaw, while on the secondary market, Wroclaw prevailed. Nevertheless, Poles pay the most for a flat in the Polish capital Warsaw. In December 2023, the price per square meter of an apartment on the secondary market exceeded 17.5 thousand zloty, while the price per square meter on the primary market was close to 16.4 thousand zloty. However, the coronavirus (COVID-19) outbreak in Poland in March 2020 affected the investment plans in the real estate market. Both individual customers and developers recorded a significant decline in the number of construction projects commenced during this period.

Graph and download economic data for Interest Rates and Price Indexes; Owner-Occupied Real Estate S&P/Case Shiller National (SA), Level (BOGZ1FL075035223A) from 1945 to 2013 about real estate, interest rate, interest, rate, price index, indexes, price, and USA.

Graph and download economic data for Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates (PRIME) from 1955-08-04 to 2024-12-20 about prime, loans, interest rate, banks, interest, depository institutions, rate, and USA.

The benchmark interest rate in Thailand was last recorded at 2 percent. This dataset provides - Thailand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Iran IR: Lending Interest Rate data was reported at 18.000 % pa in 2016. This records an increase from the previous number of 14.210 % pa for 2015. Iran IR: Lending Interest Rate data is updated yearly, averaging 12.000 % pa from Dec 2004 (Median) to 2016, with 13 observations. The data reached an all-time high of 18.000 % pa in 2016 and a record low of 11.000 % pa in 2013. Iran IR: Lending Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Iran – Table IR.World Bank.WDI: Interest Rates. Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector. This rate is normally differentiated according to creditworthiness of borrowers and objectives of financing. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; ;

Graph and download economic data for Interest Rates, Discount Rate for Australia (INTDSRAUM193N) from Jul 1969 to Apr 2013 about Australia, interest rate, interest, and rate.

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.

The benchmark interest rate in India was last recorded at 6.25 percent. This dataset provides - India 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.

This table contains 51 series, with data starting from 2013, and some select series starting from 2016. This table contains data described by the following dimensions (Not all combinations are available): Geography (1 item: Canada), Components (51 items: Total, funds advanced, residential mortgages, insured; Variable rate, insured; Fixed rate, insured, less than 1 year; Fixed rate, insured, from 1 to less than 3 years; ...), and Unit of measure (1 item: Dollars). For additional clarification on the component dimension, please visit the OSFI website for the Report on New and Existing Lending.

Brazil BR: Lending Interest Rate data was reported at 43.600 % pa in 2023. This records an increase from the previous number of 39.400 % pa for 2022. Brazil BR: Lending Interest Rate data is updated yearly, averaging 44.650 % pa from Dec 1997 (Median) to 2023, with 27 observations. The data reached an all-time high of 86.363 % pa in 1998 and a record low of 27.392 % pa in 2013. Brazil BR: Lending Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Brazil – Table BR.World Bank.WDI: Interest Rates. Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector. This rate is normally differentiated according to creditworthiness of borrowers and objectives of financing. The terms and conditions attached to these rates differ by country, however, limiting their comparability.;International Monetary Fund, International Financial Statistics and data files.;;

Rural borrowers are more likely to have higher interest rates than their urban or suburban counterparts. Approximately 11 percent of rural home purchase originations were classified as “high-cost” loans, or having an interest rate at least 150 basis points (for first-lien loans - 350 basis points for subordinate-lien loans) higher than the annual percentage rate offered on prime mortgage loans of comparable type. The incidence of high-cost lending in rural areas is considerably higher than the suburban or urban level at 7 percent. Higher mortgage rates in rural areas are attributable in part to a large number of financed manufactured homes which are more prevalent in rural communities. Manufactured homes are predominately financed with personal property loans that have shorter terms and higher rates. In addition to having an extremely high loan denial rate of 38 percent, roughly half of rural manufactured home purchase originations reported to HMDA in 2013 were classified as high-cost loans.